Wedbush Raises Ubiquiti Networks (UBNT) to Outperform as Concerns Diminish

November 8, 2013 7:53 AM EST
Get Alerts UBNT Hot Sheet
Price: $59.70 +3.11%

Rating Summary:
    5 Buy, 14 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Wedbush upgraded Ubiquiti Networks (NASDAQ: UBNT) from Neutral to Outperform with a price target of $48.00 (from $40.00). Analyst Sanjit Singh made note of diminished core growth concerns and optimism on share gain in WLAN.

"As the core AirMax business regained the level it reached prior to 2012's counterfeiting issue, we have remained on the sidelines given our concerns on LT growth in the core business and relatively muted traction with new products such as WLAN. We have turned more optimistic, given checks which indicate that wireless internet service providers (WISPs) are increasingly taking business away from traditional cable and DSL operators in developed markets, which we think will be further accelerated by a new marketing plan that will enhance consumer awareness to the alternative provided by local WISP operators," said Singh.

"In addition, we think strong growth in the company's WLAN business is poised to continue as we believe the attractively priced access points are proving popular with value-conscious customers, leading to a substantial share gain opportunity at the expense of vendors such as Netgear and Motorola," he added.

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 $37.18 yesterday.

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