Monday, March 26, 2012

Ubiquiti (Nasdaq: UBNT) Shares Rise On Upbeat Chicago Conference

Ubiquiti (Nasdaq: UBNT) Shares Rise On Upbeat Chicago ConferenceChicago, IL 3/26/12 (StreetBeat) -- Ubiquiti Networks' (Nasdaq: UBNT) new AirFiber wireless networking product, strutted out at a conference in Chicago on Friday, is getting a thumbs up from analysts.

Shares in Ubiquiti, which sells wireless networking gear to rural Internet service providers in the U.S. and abroad, were up 8% in midday trading Monday, near 33. Shares have jumped 120% since the firm's October IPO priced at $15 a share.

The AirFiber system, which uses microwave technology, links radio base stations that serve as neighborhood communications hubs to landline networks and the Internet networks. The company says the product brings "unparalleled speed" worldwide to the unregulated, license-free airwave band.

Wunderlich Securities analyst Matthew Robison on Monday increased his price target on the stock to 35 from 28. Ubiquiti unveiled the AirFiber system at Chicago conference where some 700 customers gathered.

"The highlight of the event was the introduction of AirFiber, which is arguably the biggest step in proprietary technology for the company to-date," wrote Robison in a report. "It will take a few quarters to gauge the success of AirFiber, but it looks good on paper and if the company can sell it while maintaining the current expense structure, the scalability of the business model will be proven."

Deutsche Bank analyst Brian Modoff was also upbeat in a report that came out on Sunday.

"Overall AirFiber was impressive," Modoff wrote. "The product offers 1.4 Gbps speeds over the unlicensed, 24 gigahertz spectrum band. AirFiber is priced at $2,995 a link (for two radios). Other competitors are offering half the speed for link prices of $15,000. Even with the low prices, our checks tell us that the product's margin is still above the company average. This release is another example of Ubiquiti's ability to offer advanced products at disruptive prices and one of the main reasons we remain positive on the name."

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