Key Takeaways From Extreme Networks Analyst Ratings

Extreme Networks (NASDAQ:EXTR) underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints 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.

In the assessment of 12-month price targets, analysts unveil insights for Extreme Networks, presenting an average target of $15.33, a high estimate of $17.00, and a low estimate of $13.00. This current average has increased by 4.5% from the previous average price target of $14.67.

Breaking Down Analyst Ratings: A Detailed Examination

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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Extreme Networks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Extreme Networks compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Extreme Networks's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Extreme Networks's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Discovering Extreme Networks: A Closer Look

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.

Extreme Networks: Financial Performance Dissected

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Extreme Networks faced challenges, resulting in a decline of approximately -36.53% in revenue growth as of 31 March, 2024. This signifies a reduction 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 averages, indicating potential challenges in maintaining strong profitability. With a net margin of -30.53%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Extreme Networks's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -74.42%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Extreme Networks's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -5.78%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Extreme Networks's debt-to-equity ratio stands notably higher than the industry average, reaching 3.73. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

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.

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