BofA Securities initiates Extreme Networks stock with Buy rating, $24 price target

Investing.com - BofA Securities has initiated coverage on Extreme Networks (NASDAQ:EXTR) with a Buy rating and a price target of $24.00, representing approximately 44% upside potential from current levels. The stock currently trades at $16.76, having declined 8.43% over the past week despite showing an 8.5% gain over the past year.

The coverage initiation was announced by BofA Securities on Wednesday, with the firm identifying several potential catalysts for the networking solutions provider’s stock performance. This aligns with the broader analyst consensus, which remains bullish on Extreme Networks with price targets ranging from $21 to $26.

BofA highlighted the upcoming WiFi-7 upgrade cycle, campus network refresh and modernization initiatives, and growing adoption of cloud and SaaS-based offerings as key drivers that could push Extreme Networks’ performance above current market expectations.

The $24 price target is based on approximately 17 times the company’s calendar year 2027 estimated price-to-earnings ratio, which represents a slight discount to the networking peer average of 18 times.

BofA Securities justified this valuation discount by citing Extreme Networks’ smaller operating scale and greater exposure to budget-sensitive market verticals compared to industry peers.

In other recent news, Extreme Networks Inc. reported strong financial results for the first quarter of fiscal year 2026, surpassing analyst expectations. The company achieved an earnings per share of $0.22, higher than the projected $0.20, and reported revenue of $310.2 million, exceeding the anticipated $290.89 million. These results highlight the company’s financial performance in the recent quarter. Additionally, Extreme Networks shareholders approved the election of seven directors at the annual meeting, with each receiving votes ranging from approximately 85.3 million to 101.6 million. In other board-related news, Inseego Corp. expanded its board of directors by appointing two new tech executives, Nabil Bukhari and Stephen Bye. Bukhari, who is the President of AI Platforms and CTO at Extreme Networks, brings experience in SaaS platforms and cloud-based networking products to Inseego’s board. These developments reflect strategic decisions made by both companies to enhance their leadership and governance structures.

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