Rosenblatt Raises PT for Extreme Networks to $25 from $20, Maintains Buy Rating

Rosenblatt Raises PT for Extreme Networks to $25 from $20, Maintains Buy Rating

Shares of Extreme Networks Inc. (NASDAQ: EXTR) have seen a significant boost in their price target, with Rosenblatt Securities raising its estimate to $25 from $20, while maintaining a Buy rating. This increase comes on the heels of strong fiscal fourth-quarter performance and the company's strategic initiatives.

The latest financial results from Extreme Networks indicate robust momentum, with shares reaching a 52-week high of $21.34 and trading close to their Fair Value, as per InvestingPro analysis [1]. The stock has appreciated by 39.68% over the past year, driven by annual revenue of $1.09 billion and a beta of 1.75, indicating higher volatility than the market. Analysts have set price targets between $15 and $25, with a consensus recommendation leaning towards Buy [2].

Extreme Networks' Q4 FY2025 results showed impressive growth, with revenue jumping 19.6% year-over-year to $307 million. Net income reached $33.5 million, translating to adjusted earnings of $0.25 per share, a significant improvement from the $0.08 loss per share reported a year earlier [3]. The company's focus on subscription-based services and AI-embedded solutions, such as the recently launched Extreme Platform ONE, has been a key driver of this growth.

The Extreme Platform ONE integrates AI capabilities into network management, offering enterprise-wide network visualization and significantly reducing manual work and resolution times. With over 265 customers already adopting the platform, it has received positive feedback from both customers and channel partners [3].

Looking ahead, Extreme Networks expects to generate $1.22 billion to $1.23 billion in sales during fiscal 2026, indicating continued growth momentum. The company forecasts revenue between $292 million and $300 million for the first quarter of fiscal year 2026, with non-GAAP earnings per share projected in the range of $0.20 to $0.23 [3].

Rosenblatt's positive outlook is based on the company's strong regional performance, particularly in Asia-Pacific and Europe, Middle East, and Africa. The company has also demonstrated significant market share growth potential, with opportunities to capture market share from industry leaders such as Cisco and HPE, who are distracted with Cloud infrastructure opportunities and mergers [3].

References:
[1] https://ca.investing.com/news/company-news/extreme-networks-stock-hits-52week-high-at-2005-usd-93CH-4140244
[2] https://theoutpost.ai/news-story/extreme-networks-reports-strong-q4-fy-2025-results-driven-by-ai-powered-solutions-and-cloud-services-18790/
[3] https://www.investing.com/news/analyst-ratings/needham-raises-extreme-networks-stock-price-target-on-strong-q4-93CH-4175681