Needham & Company Reaffirms a 'Buy' on iRobot (IRBT); Another Workmanlike Quarter From Consumer, Defense Businesses

Needham & Company reaffirms a 'Buy' on iRobot Corporation (NASDAQ: IRBT) price target of $40.00.

Needham analyst says, "IRBT’s strong Q2 performance was overshadowed by yesterday’s steep decline in tech stocks and the broader market. With both the consumer and G&I (defense) businesses continuing to show solid profitability, we’re more confident in our estimates for IRBT’s 2H. Management now expects the home robot business to be up 20% for the full year and guided to 15% growth in the G&I business. IRBT shares fell modestly yesterday and are off about 10% from their 52-week high, an impressive showing given the market turmoil. We attribute the relative strength in the stock to greater investor appreciation in mgmt’s ability to deliver solid top-line revenues with consistently strong earnings."

"Following the Q2 upside, our 2011 EPS estimate goes to $1.05 from $1.00 on revenues of $470M. We are maintaining 2012 EPS estimate at $1.32 on revenues of $541M."

For more ratings news on iRobot Corporation click here and for the rating history of iRobot Corporation click here.

Shares of iRobot Corporation closed at $34.51 yesterday.

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