- JMP Securities has downgraded Ubiquiti (UBNT) to Underperform ahead of its Nov. 5 FQ1 report, and set a $26 target.
- The downgrade comes a week after Ubiquiti unveiled sunMAX, an end-to-end solar system consisting of modules with integrated microinverters, a mounting system, a performance-monitoring gateway device, and design and monitoring software. BMO downgraded in September.
- Update: Also potentially weighing on Ubiquiti: The company has disclosed former Qualcomm vice chairman Steve Altman won't stand for board re-election at Ubiquiti's Dec. 16 annual meeting. Raymond James' Tavis McCourt calls Altman's move disappointing in light of his profile within tech.
- Update 2: Details on JMP's downgrade here. JMP's Erik Suppiger thinks Ubiquiti's entry into the solar market carrier high execution risk, and argues "management failed to address major business issues associated with entering this market" at recent events. He adds checks point to "limited interest" in selling sunMAX among Ubiquiti's resellers, that wireless ISPs were "underwhelmed" by the company's latest wireless broadband systems, and that wireless competition has intensified. Ubiquiti closed down 6.1%.