Ubiquiti: Priced With Too Ambitious Expectations (Rating Downgrade)

Jun. 24, 2025 8:05 AM ETUbiquiti Inc. (UI) StockUI1 Comment
Caffital Research
1.63K Followers
(9min)

Summary

  • Ubiquiti Inc. has returned to great growth. Peers have also reported a return to greater growth while Ubiquiti continues to take market share.
  • The enterprise networking market provides a runway for much more growth, but Ubiquiti's carved niche of SMBs and tech-savvy consumers makes Ubiquiti's addressable market smaller.
  • After the stock has surged, UI reflects too high base scenario expectations. I estimate a 25% downside to $279.

Close up shot of female IT professionals hand connecting ethernet cable to router in server rack while working in data center

Thomas Barwick

Ubiquiti Inc. (NYSE:UI) has shown impressive momentum. The enterprise networking equipment company has reported accelerating growth after a previous hiccup, continuing to outpace peers through a well-carved niche. While the enterprise networking industry provides a significant further growth runway, the

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1.63K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

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