Extreme Networks Poised For A Strong Comeback: Analyst Predict Bright Future In CY24
Portfolio Pulse from Anusuya Lahiri
Needham analyst Alex Henderson reiterated a Buy rating on Extreme Networks Inc (EXTR) with a $23 price target, predicting a strong comeback in CY24. Despite a slow start expected due to tough comparisons, Henderson anticipates growth reassertion and margin expansion to drive EXTR shares higher. The inventory correction is seen as temporary, with normalization expected over the next quarters. Henderson forecasts solid operating margin expansion and robust cash flow. He also notes that EXTR is undervalued compared to peers Cisco Systems (CSCO), Juniper Networks (JNPR), and F5 (FFIV), and has better growth prospects with strong EPS and cash flow growth. EXTR shares were trading higher by 1.35% to $17.98.
December 28, 2023 | 7:13 pm
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NEUTRAL IMPACT
Extreme Networks is considered undervalued compared to Cisco Systems, with better growth and strong EPS and cash flow growth.
While the article mentions CSCO as a comparison, the direct impact on CSCO's stock is not clear from the news. The focus is on EXTR's valuation and growth, not on CSCO's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Extreme Networks has better growth prospects and is undervalued compared to F5, Inc.
F5, Inc. is referenced as a comparative benchmark for EXTR's valuation. The article does not suggest immediate implications for FFIV's stock price based on the news.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Extreme Networks is selling at a discount to Juniper Networks, with better growth and strong EPS and cash flow growth.
Juniper Networks is mentioned as a peer comparison for valuation purposes. The article does not provide specific information that would directly impact JNPR's stock in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Needham analyst Alex Henderson reiterates a Buy rating on Extreme Networks with a $23 price target, expecting strong growth and margin expansion in CY24.
The positive outlook from the analyst, including expectations of growth rebound and margin expansion, is likely to instill investor confidence and could lead to a short-term increase in EXTR's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100