UPDATE: Raymond James Initiates Coverage on Extreme Networks Following Enterasys Acquisition
In a report published Thursday, Raymond James analyst Simon Leopold initiated coverage on Extreme Networks (NASDAQ: EXTR) with an Outperform rating and $8.00 price target.
In the report, Raymond James noted, “We are initiating coverage on Extreme Networks with an Outperform rating and an $8.00 price target. The acquisition of Enterasys (closed in F2Q14) creates potential for meaningful accretion and makes this primarily a value investment, yet the path to achieving synergy targets may be lumpy in the near term. Further upside stems from several opportunities including partnerships with Lenovo and Ericsson, under-appreciated products like the new core switch, and product synergies such as enterprise wireless (i.e., WLAN).”
Extreme Networks closed on Wednesday at $5.54.
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