UPDATE: Raymond James Initiates Coverage on Extreme Networks with Outperform Rating, $8 PT Following Enterasys Acquisition

In a report published Thursday, Raymond James analyst Simon Leopold initiated coverage on

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.