iRobot (IRBT) shares are trading modestly lower this morning after Benchmark analyst Josephine Millward this morning launched coverage of the company with a Hold rating and $20 price target. The stock closed yesterday at $19.09.
While she notes that the company has a strong balance sheet, with almost $4 a share in cash, Millward writes that she is cautious on 2011 and 2012 demand for military robots. “We estimate about 80% of the military robots shipped this year by the company are funded by war supplementals, and have limited funding
visibility in the coming years,” she writes in a research report. She also says mass adoption of the company’s SUGV – Small Unmanned Ground Vehicle – robots could take longer than expected.
IRBT this morning is down 18 cents, or 0.9%, to $18.91.
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