The Analyst Landscape: 5 Takes On Extreme Networks

Ratings for Extreme Networks EXTR were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $14.7, along with a high estimate of $16.50 and a low estimate of $14.00. Observing a downward trend, the current average is 27.41% lower than the prior average price target of $20.25.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Extreme Networks by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Extreme Networks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Extreme Networks compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Extreme Networks's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Extreme Networks's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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All You Need to Know About Extreme Networks

Extreme Networks Inc provides software-driven networking services for enterprise customers. Its products include wired and wireless network infrastructure equipment and software for network management, policy, analytics, and access controls. It offers high-density Wi-Fi, centralized management, cloud-based network management, and application analytics capabilities. The company operates in a single segment which develops and markets network infrastructure equipment. Roughly half of the firm's revenue is generated in the Americas, with the rest coming from Europe, the Middle East, Africa, and Asia-Pacific.

Extreme Networks: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Negative Revenue Trend: Examining Extreme Networks's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -6.9% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Extreme Networks's net margin is impressive, surpassing industry averages. With a net margin of 1.35%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Extreme Networks's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.68%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Extreme Networks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.35% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Extreme Networks's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.28, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.