Analyst Hamed Khorsand from BWS Financial maintained a Buy rating on Ubiquiti Networks and increased the price target to $600.00 from $440.00.
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Hamed Khorsand has given his Buy rating due to a combination of factors, primarily driven by Ubiquiti Networks’ unexpected growth trajectory. This growth is attributed to an expanded product line and improved supply availability, which have significantly boosted the company’s revenue. Ubiquiti’s strategic emphasis on new product introductions for its enterprise customer base has laid the foundation for this revenue increase.
Additionally, Ubiquiti’s fiscal fourth-quarter results have enabled the company to allocate its free cash flow beyond merely reducing its debt, allowing for an increased cash dividend and the announcement of a new $500 million stock buyback program. The company’s investment in broadening its product portfolio is expected to generate recurring subscription revenue, enhancing its earnings potential. These factors collectively support the revised price target of $600, up from the previous target of $440.
Khorsand covers the Technology sector, focusing on stocks such as Innodata, Adeia, and Ubiquiti Networks. According to TipRanks, Khorsand has an average return of 10.8% and a 55.24% success rate on recommended stocks.