Technology

Current supply bottlenecks are only masking a more fundamental problem - UBXN's obsession with developing its own chips has led to an inflated cost base that does not sufficiently focus on areas where it can gain a competitive advantage. Research Partners see no signs that the company can defend its market share (highlights Chinese rival Quectel’s rapid growth and Qualcomm’s intentions to enter the automotive market), control operating costs, make its services business a success or is willing to revise its strategy. Downgrades to Sell.