The Latest Analyst Ratings For Extreme Networks

Across the recent three months, 4 analysts have shared their insights on Extreme Networks EXTR, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over 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 $19.12, along with a high estimate of $23.00 and a low estimate of $14.00. A 15.02% drop is evident in the current average compared to the previous average price target of $22.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Extreme Networks's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Extreme Networks compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Extreme Networks's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Delving into Extreme Networks's Background

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.

Understanding the Numbers: Extreme Networks's Finances

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Extreme Networks's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 18.63%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.12%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Extreme Networks's ROE excels beyond industry benchmarks, reaching 25.46%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Extreme Networks's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.55%, the company showcases efficient use of assets and strong financial health.

Debt Management: Extreme Networks's debt-to-equity ratio surpasses industry norms, standing at 2.27. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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