Specialist in wireless network equipment and solutions Ubiquiti (User interface -10.22%) suffered a double-digit drop in its share price on the second trading day of the week. This was not due to any news coming directly from the company; rather, the stock was influenced by an analyst’s latest assessment. This contributed to Ubiquiti’s share price falling by over 10% on the day, compared to S&P500 The index recorded an increase of 0.2%.

Time for a price target reduction

Long before the market opened, Barclays“Tim Long has revised the price target downward. He reduced it from his previous price target of $108 to $104 per share. Unsurprisingly, his bearish view on the company has not changed, as he maintained his underweight (i.e. sell) recommendation on Ubiquiti stock.

It was not immediately clear why Long felt compelled to cut his fair value estimate on Ubiquiti. However, it seems no coincidence that the move came just two trading days after the company released its fourth-quarter results. The company missed analysts’ consensus estimates on both revenue and earnings.

Dividend-loving investors may also have been dismayed by another point: the company’s recent dividend declaration. In its earnings report, it announced that the board of directors had declared that the upcoming quarterly dividend would be $0.60 per share. In a world where dividend-paying companies often increase their payouts at least once a year, Ubiquiti continues to hold its own. It has been paying the same amount since September 2021.

Agree to disagree

Not all experts are averse to Ubiquiti. On Monday, the small research firm BWS Financial even raised its price target for the stock. And this increase was considerable: by 50%, from $160 to $240. The company maintained its buy rating for the company.