Wunderlich calls the company's risk/reward "attractive."
"Since purchasing Enterasys, Extreme has gained scale and uniqueness as an enterprise focused network supplier with both switching and wireless. Growth opportunities are emerging with upgrade cycles: higher caliber wireless with analytics and network access control as well as Ethernet fabrics for virtualization and lower latency," the firm said, which placed a price target of $9 on the stock, which represents a 55% upside to Monday's close.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: