8 Analysts Have This To Say About Extreme Networks

Extreme Networks EXTR has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

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

Analysts have set 12-month price targets for Extreme Networks, revealing an average target of $15.31, a high estimate of $17.00, and a low estimate of $13.00. Marking an increase of 2.07%, the current average surpasses the previous average price target of $15.00.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Extreme Networks. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Extreme Networks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Extreme Networks compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Extreme Networks's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Extreme Networks's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

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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.

Breaking Down Extreme Networks's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Extreme Networks faced challenges, resulting in a decline of approximately -36.53% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Extreme Networks's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -30.53%, the company may face hurdles in 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 -74.42%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Extreme Networks's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -5.78%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Extreme Networks's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.73, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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