Piper Jaffray Downgrades iRobot Corporation (IRBT) to Neutral

January 4, 2016 6:36 AM EST
Get Alerts IRBT Hot Sheet
Price: $43.20 --0%

Rating Summary:
    4 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 10 | New: 31
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Piper Jaffray downgraded iRobot Corporation (NASDAQ: IRBT) from Overweight to Neutral with a price target of $35.00 (from $34.00) on valuation.

Analyst Troy Jensen commented: "While we remain upbeat on the mid-long term opportunity for iRobot, we have opted to take a more balanced stance given the recent run up in the stock. We remain bullish on iRobot’s new marketing initiatives and focus on the connected home, but see limited upside to Q4 estimates and 2016 guidance. Given iRobot is de-emphasizing investments in Defense & Security and Telepresence coupled with the fact that 2016 consensus is at the upper end of recent annual growth rates (14% versus 10-14% over the past 3 years), we see limited upside to 2016 consensus revenue estimates. Given our belief in the home robotics and connected home markets, we would be more constructive if the stock were to pullback, but believe shares are fairly valued at current levels. As a result, we are downgrading the stock to Neutral from Overweight, but increasing our price target to $35 (from $34)."

The firm lifted FY 2016 EPS from $1.50 to $1.54 and FY 2017 EPS from $1.90 to $1.97.

For an analyst ratings summary and ratings history on iRobot Corporation click here. For more ratings news on iRobot Corporation click here.

Shares of iRobot Corporation closed at $35.40 yesterday.

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Piper Jaffray, Troy Jensen