Seeking Alpha

iRobot skyrockets following RJ upgrade; Adept also rallying

  • As far as tech momentum trades go, robots are apparently the new 3D printers. iRobot (IRBT +17.9%) is blasting off in the wake of a Raymond James upgrade that comes shortly after Google confirmed the acquisition of defense robot maker Boston Dynamics, and fellow robot maker Adept Technology (ADEP +8%) is also up sharply.
  • Interestingly, RJ's upgrade doesn't center around Google or even iRobot's defense/security robot ops (just 8% of Q3 revenue), but rather its new Roomba 800 series vacuum robots (expected to boost 2014 sales), and its Braava mopping robots (recently became available in North America).
  • Sidoti upgraded iRobot yesterday. 10% of the company's float was shorted as of Nov. 29.
Comments (1)
  • eager1
    , contributor
    Comments (127) | Send Message
     
    I read somewhere that when Google bought Boston Dynamics they mentioned that they would honor current defense contracts but intended to cut down on them going forward.
    Even if this is not true it seems to me that this a warning to the defense department to spread out its contracts. If so, perhaps iRobot will get a lot more contracts.
    Also, if the defense dept hired Boston Dynamics to build the dogs then that would imply that the defense dept owns the work done and they can give it to other vendors. Perhaps this is part of the reason for the interest going forward.
    17 Dec 2013, 01:04 PM Reply Like
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