BofA Reacts To Ubiquiti's Negative Preannouncement

In a report published Tuesday, analysts at Bank of America maintained their Underperform rating on

. The price target has been maintained at $33. The analysts believe the recent resignation of the company's CFO and board member, Craig Foster, could be indicative of internal problems at Ubiquiti Networks. In addition, the company has announced its 3Q results below the consensus expectations. Ubiquiti Networks confirmed last week that Foster was leaving to join another company and that the EVP Operations, Hartley Nisenbaum, would be appointed as the interim CFO. Although the analyst remain concerned about this shake up and the product and certification issues at the company, they also believe Foster's move might simply be "due to personality differences between Foster and the company's founder and CEO Robert Pera." On the other hand, the weak revenues posted by the company as part of its Q3 preannouncement, raise concerns regarding fuel growth. "We believe the company will continue to battle near-term lumpiness in WISP spending, slower growth in the Enterprise segment, and a difficult macro environment," the analysts added. Bank of America also remains concerned regarding the company's ability to drive growth going forward.