Spruce Point Capital Releases a Strong Sell Research Opinion on iRobot Corporation (IRBT)

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 
[e-mail] 
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

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