Zacks Investment Research downgraded shares of Ubiquiti Networks, Inc. (UBNT) from NEUTRAL to UNDERPERFORM on January 07, 2015, with a target price of $25.00.
We are downgrading our recommendation on Ubiquiti Networks to Underperform from Neutral, following the downward estimate revision by the analysts. The company reported lackluster first-quarter fiscal 2015 results, with adjusted earnings coming below both the Zacks Consensus Estimate and the year-ago figure. Lower worldwide revenues, hurt by decline in demand from foreign customers was the reason for this. Also, the company spent heavily on its research and development (R&D) expenses, which weighted on its financials. Moreover, Ubiquiti Networks has been negatively impacted by political and economic instability in Eastern Europe and the Middle East countries. With such factors prevailing, we believe do not see any significant turnaround in the stock in the near term.
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