He cut his share-price target for iRobot to $41 from $43.
The recent surge by the stock was “unjustified,” Strouse wrote in a report, according to Bloomberg.
Since touching bottom March 18, iRobot shares have jumped 50%, compared with an 18% gain for the S&P 500 index.
iRobot stock is overvalued, accounting for “a weaker-than-expected start to the year” and “likely significantly reduced near-term consumer spending on high-end discretionary products,” he wrote in a report, according to Bloomberg.
Of course, the coronavirus pandemic is responsible for much of that, Strouse noted.
The company’s outlook is “tilted unfavorably near term,” he said. “IRBT is already a crowded short.”
In February, iRobot had predicted that for 2020 as a whole, revenue should come in at $1.32 billion to $1.35 billion. And on March 23, iRobot projected first-quarter 2020 revenue at $175 million to $185 million.
But in March, the company said, “as a result of the uncertainty surrounding covid-19, including its duration and broader macroeconomic impact, as well as the evolving tariff exclusion process, iRobot is withdrawing its financial expectations for [full-year] 2020 provided last month.”
At the same time, the Bedford, Mass., company said in March that its request to the government for a tariff exclusion for its Roomba robot vacuum products is advancing, though it hasn’t yet been approved.
iRobot shares recently traded at $49.80, down 2.2%, compared with a 1.6% gain for the S&P 500 Index.