Needham & Company Lifts PT on iRobot (IRBT) to $39 after Solid Q2 Earnings
Needham & Company analyst James Ricchiuti reiterated Buy rating and raised his price target on iRobot Corporation (NASDAQ: IRBT) from $32 to $39 following Q2 results.
Ricchiuti comments, "Investors took profits in IRBT shares yesterday in the wake of the recent strong run-up after the company reported a solid Q2 EPS beat even after adjusting for a lower tax rate. Results benefitted from impressive 20% growth in the company's home robot business. The Defense & Security business was down 6% y/o/y, in line with expectations and putting this business on track to meet mgmt’s prior guidance. Q3 revenue guidance was in line and EPS guidance was modestly better than we were modeling, although overly aggressive (in our view) Street EPS numbers are likely to move lower. Mgmt reiterated its full-year revenue guidance and increased the bottom end of its EPS guidance as a result of the Q2 beat. We reaffirm our Buy rating and have increased our target price to $39 from $32, or 24x our 2014 non-GAAP EPS est, adding back net cash."
The firm raised FY 2013 EPS from $0.82 to $0.98 and FY 2014 EPS from $1.05 to $1.10.
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 $33.40 yesterday, with a 52 week range of $16.25-$41.12.
Ricchiuti comments, "Investors took profits in IRBT shares yesterday in the wake of the recent strong run-up after the company reported a solid Q2 EPS beat even after adjusting for a lower tax rate. Results benefitted from impressive 20% growth in the company's home robot business. The Defense & Security business was down 6% y/o/y, in line with expectations and putting this business on track to meet mgmt’s prior guidance. Q3 revenue guidance was in line and EPS guidance was modestly better than we were modeling, although overly aggressive (in our view) Street EPS numbers are likely to move lower. Mgmt reiterated its full-year revenue guidance and increased the bottom end of its EPS guidance as a result of the Q2 beat. We reaffirm our Buy rating and have increased our target price to $39 from $32, or 24x our 2014 non-GAAP EPS est, adding back net cash."
The firm raised FY 2013 EPS from $0.82 to $0.98 and FY 2014 EPS from $1.05 to $1.10.
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 $33.40 yesterday, with a 52 week range of $16.25-$41.12.