Analyst: iRobot Should Grow, But Watch Out For FX

In a report published Monday, Canaccord Genuity analysts maintained a Buy rating on

, with a price target of $40, after meeting with the senior management of the company. The analysts believe that iRobot is poised to achieve "healthy growth" in its core robot vacuum business, "given under-penetration of the broader vacuum TAM, and an inflection in consumer interest in the category." Management is still strategizing on ways to monetize iRobot's substantial IP portfolio. The analysts expect "investments to be within the context of the 2016 plan." Canaccord Genuity believes that the stock would be range-bound in the near term on "FX headwinds given adverse currency swings since the company offered guidance early February." While the company faces limited competitive threat, it is also witnessing emerging opportunities, the report highlighted.