UPDATE: Wedbush Upgrades Ubiquiti Networks to Outperform, Raises PT on Diminished Growth Concerns

In a report published Friday, Wedbush analyst Sanjit Singh upgraded the rating on Ubiquiti Networks (NASDAQ: UBNT) from Neutral to Outperform, and raised the price target from $40.00 to $48.00.In the report, Wedbush noted, “We are upgrading shares to OUTPERFORM given our diminished growth concerns in the core business and optimism on the company's substantial share gain opportunity in the WLAN market. Ubiquiti delivered yet another beat and raise, but this time, strength was driven by robust growth in the company's core WLAN business, which we estimate grew over 200% q/q. 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. 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. We advise LT growth investors looking for a share gain opportunity in the fast growing wireless market to own the name.”Ubiquiti Networks closed on Thursday at $37.18.