Deep Dive Into Extreme Networks Stock: Analyst Perspectives (4 Ratings)

4 analysts have expressed a variety of opinions on Extreme Networks EXTR over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $20.0, with a high estimate of $22.00 and a low estimate of $16.00. Surpassing the previous average price target of $19.50, the current average has increased by 2.56%.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils 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: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Extreme Networks. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Extreme Networks compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Extreme Networks's stock. This examination 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.

Stay up to date on Extreme Networks analyst ratings.

Get to Know Extreme Networks Better

Extreme Networks Inc provides cloud networking solutions and industry services and support. Extreme designs, develops, and manufactures wired, wireless, and software-defined wide area-network (SD- WAN) infrastructure equipment, software and cloud-based network management solutions. The company's cloud solution is a single platform that offers unified network management of wireless access points, switches, and SD-WAN. 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's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Extreme Networks's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -5.74%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Extreme Networks's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.64%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Extreme Networks's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 17.59%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Extreme Networks's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.69%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 4.52, Extreme Networks faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.

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