The analyst firm also lowered its EPS estimates for the wireless communications company through 2016. Credit Suisse now expects Ubiquiti to report earnings of $2.05 a share for 2015, down from its previous estimates of $2.18 a share. The firm lowered its 2016 EPS estimates to $2.12 a share from $2.43 a share.
Credit Suisse analysts wrote, "Service provider revenue grew 13.9% y/y, less than a quarter of the FY14 rate. Management pointed to geopolitical, currency and product transitions as the cause for the soft patch and sees secular Internet adoption in emerging market as the core driver for the segment. Meanwhile, competition from Cisco and Ruckus in enterprise are not seen as disrupting the status quo given Ubiquiti's disruptive pricing and strong community."
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Separately, TheStreet Ratings team rates UBIQUITI NETWORKS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate UBIQUITI NETWORKS INC (UBNT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: UBNT Ratings Report