Analyst Ryan Koontz from Needham maintained a Buy rating on Extreme Networks and increased the price target to $24.00 from $20.00.
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Ryan Koontz has given his Buy rating due to a combination of factors including Extreme Networks’ impressive financial performance and strategic initiatives. The company reported a strong fourth quarter, surpassing expectations with record new SaaS annual recurring revenue and notable growth in regions such as Asia-Pacific and Europe, Middle East, and Africa. This growth was bolstered by significant deals, including initial shipments to John Deere and a substantial expansion with the Japanese government.
Koontz also highlights the potential for future growth driven by the upcoming launch of Platform ONE, which is expected to gradually increase recurring revenue. Additionally, Extreme Networks’ unique campus fabric architecture is anticipated to help the company capture market share from competitors like Cisco and HPE, who are currently focused on cloud infrastructure and mergers. Given these factors, Koontz maintains a positive outlook on the stock, raising the price target to $24.
Koontz covers the Technology sector, focusing on stocks such as Extreme Networks, Adtran, and Calix. According to TipRanks, Koontz has an average return of 4.1% and a 47.64% success rate on recommended stocks.
In another report released yesterday, Rosenblatt Securities also reiterated a Buy rating on the stock with a $25.00 price target.