Skip to main content

Market Overview

UPDATE: Needham Initiates Coverage on Extreme Networks on Considerable Value From Acquisition of Enterasys

Share:

In a report published Tuesday, Needham & Company analyst Alex Henderson initiated coverage on Extreme Networks (NASDAQ: EXTR) with a Buy rating and $9.00 price target.

In the report, Needham & Company noted, “We are initiating coverage of Extreme Networks with a Buy rating and $9 target price. We believe Extreme Networks' acquisition of Enterasys Networks creates considerable value through streamlining, cross-product and cross-customer selling synergies, and through hard-nosed cost cutting. We think Extreme can reach a run-rate earnings level of $0.90-1.00/share over 12-18 months, even assuming virtually no top-line growth. Based on these conservative assessments, we think EXTR can reasonably be valued at 9.5x earnings. If the company can prove better growth rates, we believe it may be able to push the valuation higher.”

Extreme Networks closed on Monday at $6.32.

Latest Ratings for EXTR

DateFirmActionFromTo
Jul 2020B. Riley FBRInitiates Coverage OnBuy
Apr 2020JP MorganInitiates Coverage OnNeutral
Apr 2020JMP SecuritiesMaintainsMarket Outperform

View More Analyst Ratings for EXTR
View the Latest Analyst Ratings

 

Related Articles (EXTR)

View Comments and Join the Discussion!

Posted-In: Alex Henderson Needham & CompanyAnalyst Color Initiation Analyst Ratings

Latest Ratings

StockFirmActionPT
FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com