Extreme Networks, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan Koontz from Needham maintained a Buy rating on the stock and has a $24.00 price target.
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Ryan Koontz has given his Buy rating due to a combination of factors including Extreme Networks’ strong financial performance and growth prospects. The company reported a solid first fiscal quarter with revenues exceeding expectations by 5%, and it raised its revenue guidance for the fiscal year 2026, indicating confidence in its future performance. Additionally, there was significant growth in the company’s SaaS annual recurring revenue and notable increases in revenues from the APAC and EMEA regions.
Despite a slight decline in gross margins due to higher hardware costs and initial cloud-related expenses, Koontz views the recent 15% drop in stock price as an overreaction by the market. He remains optimistic about the company’s differentiated campus fabric architecture, which is expected to enhance market share. Consequently, while there is a slight reduction in the earnings per share estimate for fiscal 2026, the revenue estimates for fiscal 2026 and 2027 have been modestly increased, supporting the Buy rating.
In another report released today, Lake Street also maintained a Buy rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EXTR in relation to earlier this year.