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
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.
Spruce Point Capital Management
Spruce Point Capital Management, LLC is a member of the Financial Industry Regulatory Authority, CRD number 288248.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/spruce-point-capital-releases-a-strong-sell-research-opinion-on-irobot-corporation-irbt-300480361.html
SOURCE Spruce Point Capital Management, LLC