Barclays Boosts Ubiquiti Price Target to $527 After 35.8% Q2 Revenue Surge
Barclays raised its Ubiquiti price target to $527 from $455 following fiscal Q2 revenue of $814.8 million, a 35.8% year-on-year increase driven by Enterprise and Service Provider segments. R&D expenses rose to $50.8 million and SG&A climbed to $30.3 million in the quarter.
1. Price Target Revision
Barclays analyst Tim Long increased Ubiquiti’s price target to $527 from $455 following adjustments to the firm’s financial model after Q2 results. Despite the higher target, Barclays maintained an Underweight rating, reflecting caution on valuation relative to peers.
2. Q2 Revenue Growth
Ubiquiti recorded fiscal Q2 revenue of $814.8 million, up 35.8% from the prior year. Growth was driven by increased sales in the Enterprise Technology and Service Provider Technology platforms, marking a sequential and annual acceleration.
3. Expense Increases
Research and development expenses rose to $50.8 million, up from $48.5 million last quarter and $40.0 million a year ago, driven by prototype costs and higher employee-related spending. Sales, general and administrative costs also increased to $30.3 million from $27.1 million in the previous quarter.
4. Analyst Outlook
The price target boost reflects confidence in ongoing revenue momentum but the Underweight rating signals limited upside versus risk. Investors may weigh robust top-line gains against rising expense levels and broader sector valuation pressures.