UPDATE: Wunderlich Securities Initiates Coverage on Extreme Networks with Buy Rating, $9 PT on Unique Market Position

In a report published Tuesday, Wunderlich Securities analyst Matthew S. Robison initiated coverage on

with a Buy rating and $9.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Extreme Networks, Inc. (EXTR) with a Buy rating and 12-month target price of $9.00. Since purchasing Enterasys, Extreme has gained scale and uniqueness as an enterprise-focused network supplier with both switching and wireless. Growth opportunities are emerging with upgrade cycles: higher caliber wireless with analytics and network access control (NAC), as well as Ethernet fabrics for virtualization and lower latency. At approximately 1x the current revenue rate, valuation is attractive, in our opinion. The investment risks involve integration challenges associated with a large acquisition that we believe are temporary. However, we view these risks to be more than justified by the prospects Extreme offers for investors to benefit from industry transition.” Extreme Networks closed on Monday at $5.80.