FBN Securities Bullish On Ubiquiti Networks Inc

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Analysts at FBN Securities initiated coverage on Ubiquiti Networks Inc UBNT with an Outperform rating and $55 price target.

Shebly Seyrafi stated, “The company uses a unique, engineering-focused business model to sell products such as WLAN, routers, (recently) switches, and other products at very attractive price points that are meaningfully below the competition.”

Seyrafi highlighted four reasons for the Outperform rating:

  • Strong position in service provider base stations. Ubiquiti’s airMAX product continues to be a key growth provider for company.
  • Attractive value proposition driving growth in enterprise WLAN. The company’s enterprise segment has grown by 10% since fiscal year 2013.
  • Strong international growth. Analysts stated, “Unlike most of our other covered technology companies, UBNT derives a relatively small percentage of revenue from N. America (only 28% in FQ4 2014) and is well distributed across the other geographies.”
  • New product cycles. The company is launching new product cycles in the enterprise segment including switches and VoIP/security gateways.

Shares of Ubiquiti Networks traded recently at $46.93, up 1.4 percent

Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsFBN SecuritiesShebly Seyrafi
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