IRobot Shares Upgraded to Market Perform at Raymond James

Raymond James, the last Wall Street firm to rate iRobot shares at a less-than-neutral level, upgraded the company to market perform, saying its headwinds are overstated.
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IRobot (IRBT) - Get Report shares are climbing after the robotics-technology developer was upgraded to market perform from underperform at Raymond James, which says the headwinds the company faces have been overpriced into the shares.

The average price target on the company is $53 a share, according to Bloomberg data.

Raymond James analyst Brian Gesuale says the negatives working against the company aren’t enough to push the shares much below current levels.

“Estimates are washed out, potential upside catalysts exist, and there are few negative catalysts to push [the] shares below the $45-$55 range,” analyst Brian Gesuale wrote.

Raymond James was the last Wall Street firm with a less-than-neutral rating. Among the analysts, the stock of the Bedford, Mass., company now has one buy rating, eight holds and no sells. 

IRobot shares at last check were up 2.6% to $54.78.

The positives include new partnerships with companies looking to expand in internet-of-things technology.

The company recently said it was collaborating with IFTTT, an integration and discovery platform that will work to integrate various smart devices and services within the iRobot Home App.

The headwinds iRobot faces include the U.S.-China trade war, which recently saw an initial settlement accord. 

The company recently said it expects to incur $35 million to $40 million in tariff-related costs thanks to higher levies on imports from China.

IRobot stock is down nearly 35% over the past 12 months, including a nearly 40% drop over the past six months. In the past four weeks, however, the stock has recovered nearly 18%.

The company is scheduled to report results in February, with analysts surveyed by FactSet expecting earnings of 39 cents a share on revenue of $414.6 million.