Why This Analyst Cut iRobot's Price Target By $30

However, iRobot's global momentum is unlikely to continue moving forward as management's guide of 40-percent revenue growth in the U.S. (versus a prior 30-percent guide) is overshadowed by expectations in China. The company is now expecting a 25- to 30-percent decline in revenue in the country after previously estimating nominal growth.

Moreover, a lack of visibility into organic demand heading into 2018 and a growing competitive landscape creates uncertainty. In addition, the company will need to ramp spending to release new products, which is likely to limit leverage.

Finally, Burleson revised $65 price target now reflects a 21x multiple that is mostly in-line with the company's organic EPS growth expectations for next year.