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Investing.com - Needham has raised its price target on Extreme Networks (NASDAQ:EXTR) to $24.00 from $20.00 while maintaining a Buy rating following the company’s strong fiscal fourth-quarter performance. The stock, currently trading at $20.15, is near its 52-week high of $21.34, with InvestingPro analysis indicating the shares are trading close to Fair Value. Analyst targets range from $15 to $25, with a consensus recommendation leaning towards Buy.
The networking solutions provider delivered quarterly results that exceeded expectations and provided fiscal 2026 guidance ahead of consensus estimates. The fourth quarter saw record net new SaaS ARR (Annual Recurring Revenue) of $24 million. With gross profit margins at 58.24% and annual revenue of $1.09 billion, InvestingPro data shows the company operates with moderate debt levels while maintaining strong growth potential.
Extreme Networks demonstrated significant regional strength, particularly in Asia-Pacific where sales grew 176% year-over-year and in Europe, Middle East, and Africa with 21% year-over-year growth. These results included initial shipments to John Deere (NYSE:DE) and an eight-figure expansion deal with the Japanese government.
Needham expects the company’s upcoming Platform ONE launch in the September quarter to drive steady acceleration in ARR, while its differentiated campus fabric architecture positions it to gain market share in higher-end segments.
The research firm sees opportunities for Extreme Networks to capture market share from industry leaders Cisco (NASDAQ:CSCO) and HPE, which it describes as "distracted with Cloud infrastructure opportunities and mergers."
In other recent news, Extreme Networks announced the general availability of its Extreme Platform ONE, described as the first networking solution to fully integrate conversational and agentic AI capabilities into network management. The platform is designed to provide enterprise-wide network visualization, significantly reducing manual work and cutting resolution times. Extreme Networks reports that over 265 customers have already adopted this platform. Needham maintains its Buy rating and $20 price target for Extreme Networks, following the firm’s attendance at the Extreme Connect event in Paris. During this event, Extreme Networks unveiled Platform ONE, which aims to consolidate network, security, policy, asset, and subscription management into a single AI-native platform. The response from customers and channel partners was notably positive, according to Needham. Platform ONE is currently in beta and available to E-Rate channels, with a broader release scheduled for the third calendar quarter.
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