Needham raises PT on Extreme Networks on revenue growth potential

Extreme Networks

28/12/2021 15:03

** Shares of network equipment company  EXTR.O  volatile in
early trade, last up 0.2% 
    ** Needham raises PT to $18.50 from $16.00, expecting
another strong year for the stock
    ** "Demand looks healthy, backlog is huge, and supply chain
pressures and costs look to be abating even as announced price
hikes feather in by the June quarter" - Needham
    ** Says co's success with cloud and artificial intelligence
automation is helping it gain market share and the firm has
delivered solid cost management, cost streamlining during COVID
    ** "There is a lot to like in Extreme's CY21 and CY22
outlook," brokerage says, estimating product revenue growth
could be in the mid-teens in CY22 and CY23
    ** Stock has surged 134% YTD
    

 (Reporting by Anisha Sircar in Bengaluru)
 ((Anisha.Sircar@thomsonreuters.com;))