iRobot shares plunged in pre-market trading Wednesday, after an analyst downgraded the stock.
Raymond James analyst Brian Gesuale downgraded the Roomba maker’s stock to underperform, citing concerns over increased competition in the robotic vacuum cleaners space.
Gesuale feels that iRobot is facing intense competition and pricing pressure from Shark's competing models, which are "peeling back prices at the high end" even as it "makes the mid-market vanish."
The "robot wars" between competing android vacuum cleaners would "continue to entice consumers towards substitute offerings," the analyst wrote.
Raymond James expects iRobot’s 2020 earnings per share to be $2.40 and revenue $1.27 billion, well below the estimates of analysts tracked by Bloomberg.
a company, which engages in the business of designing and building robots
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