Bank of America Corp. Initiates Coverage on Ubiquiti Networks (UBNT)
Equities researchers at Bank of America Corp. assumed coverage on shares of Ubiquiti Networks (NASDAQ: UBNT) in a research report issued on Wednesday, ARN reports. The firm set a “buy” rating and a $21.00 price target on the stock. Bank of America Corp.’s price objective points to a potential upside of 4.63% from the stock’s previous close.
The analysts wrote, “We are initiating coverage of Ubiquiti Networks with a Buy rating and $21 PO. Ubiquiti provides networking gear for fixed wireless broadband, wireless backhaul, routing, as well as enterprise equipment, such as WLAN (WiFi), video surveillance, and m2m communication components. The company’s key differentiation is its price disruption, selling equipment to under-networked and un-connected regions at 20% the cost of traditional vendors. A unique business model of word-of-mouth marketing and community-based support helps it maintain 30%+ operating margins, despite a low gross margin (~43%). With ~18% normalized EPS growth for 2014 and 2015, we would have normally used industry’s ~1.1x PEG (21x 2014 P/E), yet inherent risks in the model and a few recent hiccups, drive a more conservative target of 17x P/E, which could expand upon more consistent execution.”
Shares of Ubiquiti Networks (NASDAQ: UBNT) traded up 2.84% during mid-day trading on Wednesday, hitting $20.64. Ubiquiti Networks has a 52 week low of $7.80 and a 52 week high of $20.89. The stock’s 50-day moving average is currently $17.63. The company has a market cap of $1.797 billion and a P/E ratio of 22.70.
Ubiquiti Networks (NASDAQ: UBNT) last issued its quarterly earnings data on Thursday, May 9th. The company reported $0.24 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.21 by $0.03. The company had revenue of $83.15 million for the quarter, compared to the consensus estimate of $80.10 million. During the same quarter in the prior year, the company posted $0.30 earnings per share. The company’s quarterly revenue was down 9.3% on a year-over-year basis. Ubiquiti Networks has set its Q4 guidance at $0.26-0.29 EPS. On average, analysts predict that Ubiquiti Networks will post $0.85 earnings per share for the current fiscal year.
UBNT has been the subject of a number of other recent research reports. Analysts at Zacks downgraded shares of Ubiquiti Networks from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday, July 10th. They now have a $19.90 price target on the stock. Separately, analysts at JMP Securities reiterated an “outperform” rating on shares of Ubiquiti Networks in a research note to investors on Wednesday, June 19th. They now have a $21.00 price target on the stock. Finally, analysts at BMO Capital Markets reiterated an “outperform” rating on shares of Ubiquiti Networks in a research note to investors on Monday, June 17th. They now have a $20.00 price target on the stock.
Six equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $19.10.
Ubiquiti Networks, Inc (NASDAQ: UBNT) is a communications technology Company.
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