iRobot price target lowered to $51 from $61 at Citi

Citi lowered the firm’s price target on iRobot to $51 from $61 and keeps a Neutral rating on the shares. The company announced a credit agreement with Carlyle for $200M and an amended merger agreement with Amazon reflecting a reduction in the purchase price, which has been reduced by 15%, the analyst tells investors in a research note. Citi adjusted the model to reflect expectations of fundamentals worsening with higher interest expense on the new debt. The reduced target price reflects the acquisition price and is based on the firm’s view that the acquisition will eventually close.