Auriga Maintains a 'Buy' on Ubiquiti Networks (UBNT); Operating Expenses Rising, But Now 'Lawyered Up'

May 3, 2012 2:15 PM EDT
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Price: $59.69 +2.26%

Rating Summary:
    5 Buy, 14 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Auriga maintains a 'Buy' on Ubiquiti Networks (NASDAQ: UBNT) price target of $31.00.

Analyst, K                         evin Dede, said, "One discouraging aspect of Tuesday's report was the change in trajectory of Ubiquiti's operating expenses, now slated to rise to 8.5-9.0% of sales, incrementally higher than the prior 7% expectation, with the end purpose of addressing the issue that perhaps came to haunt the shares yesterday: intellectual property. The counter attack. On March 19, Ubiquiti hired a new general counsel with distinct skills and experience, a polished professional in dealing with Chinese companies in the enforcement of copyrights, patents, and trademarks. In discussing Ubiquiti's activities with the company's management team last night, we understand that Ubiquiti's new GC began notifying companies that were suspected of stealing Ubiquiti's technology, and it is presumed that action resulted in a borderline libelous article that carried a predisposed negative discussion regarding Ubiquiti's CEO, Robert Pera, appearing on the web."

For an analyst ratings summary and ratings history on Ubiquiti Networks click here. For more ratings news on Ubiquiti Networks click here.

Shares of Ubiquiti Networks closed at $28.90 yesterday.

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