Why LONG iRobot (IRBT)

iRobot Corporation develops and manufacture robotic solutions to real-world problems. Prducts combine Artificial Intelligence (AI) technology with easy to use interfaces. The consumer robots are supervised by their owners and respond to a click of a button or a mouse.

Financial Summary:
For the nine monts ended 27 September 2014, iRobot Corp. revenues increased to 10% to $297.5M. Net income increased 16% to $28.4M. Revenues reflect the home robots segment increase of 17% to $373.3M, Non-US segment increase of 15% to $256.6M. Net income also benefited from Other General & Admin decrease of 10% to $29.8M (expense).

Please see the product videos below:

Home Segment:

Business Segment:

Company / Meetings


Defense / Military

Reasons To Buy:

– IRBT international sales are growing expenontially. The international sales grew 19% year over year.

– IRBT international sales teams are now in China as well as in Europe, the Middle East and Africa

– IRBT is currently venturing further into other international territories (as mentioned in their Q2 reporting)

– New home products are being added to the product pipeline

– IRBT has been taken some serious steps to increase shareholders’ returns over the past few quaters. In April, IRBT has announced a stock repurchase plan ($50M)

– Their funding from US federal government and DEPRA (for defense related products) is now minimal. It is only 6.2% of the total revenue. This means that even if we see some government funding cuts, the company can easily cope with this with their growing portfolio of products and new sales territories.

Broker Recommendations / Analyst Opinion

Strong Buy 3
Buy 0
Hold 2
Sell 0
Strong Sell 0
ABR 1.80 1.80 1.80 1.80

Price Target Summary
Mean Target: 44.75
Median Target: 43.50
High Target: 55.00
Low Target: 38.00
No. of Brokers: 8

BUY PRICE: 34.85 (24.11.14)
TARGET PRICE TO SELL (MonacoTrader): $40