NEW YORK, June 27, 2017 /PRNewswire/ -- iRobot (Nasdaq:
IRBT) faces 20-50% downside risk as a result of new competitive
threats, difficult financial comparisons and potential financial
control issues:
- iRobot's recent financial performance reflects restocking of
its supply chain after years of false starts, the removal of the
struggling military business, and the acquisition boost from its
(related-party) Japanese Distributor. We believe these
factors will create very difficult comparisons for iRobot to lap in
the future, and create headwinds for future share price
appreciation
- Based on Spruce Point field research we expect SharkNinja to
launch a competing product at lower price points. SharkNinja
outsold Dyson to claim share in traditional vacuums and has a track
record of disrupting numerous home appliance markets with dynamic
marketing strategies and superior products
- Spruce Point has financial control concerns about iRobots's
recent acquisition of its Japanese distributor. There are
several instances (e.g., Valeant, Ceaserstone) where related-party
distributor acquisitions are harbingers of financial revisions
The research note can be found at www.sprucepointcap.com and
updates will be posted on twitter @sprucepointcap.
Spruce Point Capital has a short position in iRobot Corporation
and stands to benefit if its share price falls.
About Spruce Point Capital
Spruce Point Capital
Management, LLC, is a forensic research oriented investment manager
that focuses on short-selling, value and special situation
investment opportunities.
Contact
Sean
Donohue
Spruce Point Capital Management
sean.donohue@sprucepointcap.com
212-519-9813
Spruce Point Capital Management, LLC is a member of the
Financial Industry Regulatory Authority, CRD number 288248.
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SOURCE Spruce Point Capital Management, LLC