Ubiquiti Networks Given New $31.00 Price Target

Hi Guys,
Now I know why UBNT is down while the overall market is up quite bit. Here is the link, http://sleekmoney.com/ubiquiti-networks-given-new-31-00-pric…
I would love to see the reasoning behind the down grade, as we know here UBNT had a qreat 2nd quarter and I don’t see the derail from the growth trajectory, and leadership team were very frank regarding the inventory buildup in the 1Q CC. etc. etc.
Anyone has access to the detailed notes of the downgrade? Thanks!

Zangwei

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Maybe I should place a limit order for $31.01?

Wayne

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Do they know something we don’t? Forward consensus EPS targets are $2.24 for 2015 and $2.70 for 2016, which results in a current forward PE of 15.6 and 13 respectively against estimated growth of 15-20%. They have a tendency to beat as we know . . . perhaps Deutsche is reading into the dividend announcement and concluding that they are seeing less opportunities. I am overweight and don’t see any reason to lighten here. UBNT may become my largest position.

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