UPDATE: Bank of America Initiates Ubiquiti Networks at Buy on Low Cost Networking

In a report published on Monday, Bank of America analyst Tal Liani initialed coverage on Ubiquiti Networks UBNT with a Buy rating and a price target of $21.00.

In the report, Bank of America noted, "Ubiquiti's growth is driven by the need for cheaper, high performance networking gear, where the traditional high-touch, high-cost solutions are too expensive and not easily scalable. Over the last few years, the company expanded from its initial long range wireless broadband equipment, designed for emerging regions, to routers, point-to-point wireless, and to enterprise solutions. Core solutions account for 67% of revenues and grow ~20%+ on a normalized basis, while new products account for 14% of revenues, growing 19% YoY in the most recent quarter."

Ubiquiti Networks closed on Friday at $15.90.