BWS Financial Raises Ubiquiti (UI) Price Target to $600 Amid Bullish Outlook

Ubiquiti (UI) has received an updated analyst rating from BWS Financial, with analyst Hamed Khorsand maintaining a "Buy" rating and raising the price target from $440 to $600, a 36.36% increase. The adjustment reflects BWS Financial's bullish outlook on Ubiquiti, maintaining the positive sentiment held since earlier in the year. The average target price for Ubiquiti is $369.50 with a high estimate of $440 and a low estimate of $299.

Title: Ubiquiti (UI) Stock: BWS Financial Raises Price Target to $600

July 02, 2025 - BWS Financial has upgraded its price target for Ubiquiti (UI) stock, raising it from $440 to $600. This represents a 36.36% increase, reflecting the investment firm's bullish outlook on the company's prospects. The new target price is well above the current average analyst estimate of $369.50, with a high estimate of $440 and a low estimate of $299.

The upgrade comes following Ubiquiti's strong Q4 2025 earnings report, which exceeded analyst expectations. The company reported earnings per share (EPS) of $3.54, surpassing the Zacks Consensus Estimate of $2.23 by $1.31. Revenue for the quarter was $759.15 million, a significant increase over analysts' forecasts of $618.80 million [1].

BWS Financial attributed the upgrade to Ubiquiti's robust operational performance and potential for future growth. The firm noted that the company's gross margin of 45.1% and net margin of 23.65% indicate a strong business model. Additionally, Ubiquiti's return on equity (ROE) of 237.68% and $47.5 million in research and development (R&D) spending signal a commitment to innovation.

However, BWS Financial acknowledged the challenges Ubiquiti faces, including tariff risks and a high valuation. The company's forward P/E ratio of 41.81 and P/B ratio of 46.19 are higher than industry averages, which could make the stock vulnerable to market volatility. Nevertheless, the firm believes that Ubiquiti's operational strengths and strategic initiatives to mitigate tariff risks justify the higher valuation.

Institutional investors have also shown interest in Ubiquiti. Several institutional investors increased their stakes in the company during the second quarter, including Cetera Investment Advisers, Legal & General Group Plc, Optimist Retirement Group LLC, Canada Pension Plan Investment Board, and Vident Advisory LLC. This increased institutional ownership could provide further support for the stock [2].

Ubiquiti's stock has been volatile in recent months, trading between $165.50 and $514.00 over the past year. However, the company's strong earnings report and BWS Financial's price target upgrade suggest that the stock could be undervalued by the market. Investors should closely monitor the company's ability to maintain its operational performance and navigate the challenges posed by tariffs and high valuations.

References:
[1] https://www.marketbeat.com/instant-alerts/ubiquiti-nyseui-issues-earnings-results-beats-expectations-by-131-eps-2025-08-23/
[2] https://www.ainvest.com/news/ubiquiti-q4-earnings-valuation-dynamics-tariff-uncertainty-2508/