Extreme Networks rises as UBS starts coverage with 'buy' rating

Extreme Networks

22/09/2023 16:44

** Shares of network equipment maker Extreme Networks
 EXTR.O  rise 4.5% to $24.16 after UBS initiates coverage with a
"buy" rating
    ** Stock on track to see biggest single-day percentage gain
in over three weeks if gains hold 
    ** UBS says co's unification of products and compatibility
with Cisco  CSCO.O  gear to drive at least 10% rev growth for co
in next three years, 400-500 base points faster than peers
        ** UBS sees a $200 mln increment in co's product backlog
conversion to revenue 
    ** Says lowering supply chain costs will drive co's gross
margins almost 400 base points higher, supporting around 25% EPS
compound growth rate 
    ** UBS sets PT at $30, representing an upside of 29.81% to
co's last close 
    ** Of the 8 analysts covering co's stock, 6 say "buy" or
higher and 2 say "sell"; median PT at $34 -LSEG data
    ** EXTR up 31.8% YTD, including session gains 

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))