NEW YORK (TheStreet) -- Stock coverage of Extreme Networks Inc. (EXTR) was initiated by Raymond James with a rating of "outperform" and a price target of $8 on Thursday. Extreme Network's shares were up 0.27% to 5.55 Thursday morning.
Raymond James noted recent acquisitions and partnerships with different companies as the reason for the upgrade.
Extreme Networks is a provider of network infrastructure equipment and services.
"The acquisition of Enterasys creates potential for meaningful accretion and makes this primarily a value investment, yet the path to achieving synergy targets may be lumpy in the near term," they said in a note. "We envision several opportunities for upside. Extreme partners with China-based Lenovo (LNVGY) providing switches for Lenovo's new converged infrastructure business."
TheStreet Ratings team rates EXTREME NETWORKS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXTREME NETWORKS INC (EXTR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."