tiprankstipranks
Extreme Networks downgrade creates buying opportunity, says B. Riley
The Fly

Extreme Networks downgrade creates buying opportunity, says B. Riley

B. Riley notes that shares of Extreme Networks (EXTR) "were down 15% after a competitor downgrade," citing CDW‘s (CDW) change of the U.S. IT spending forecast to a high single-digit decline from the previous view of flat year-over-year. CDW is a provider of IT solutions, and is a channel partner of Extreme Networks. Regarding the U.S. IT spending, the firm is modeling Extreme Networks’ orders to decline 15% in 2023, and as such, its order estimates are more conservative compared with CDW’s view. Regarding the backlog stability, B. Riley estimates Q2 orders were $305M, down 22% from the peak of $389M in Q3 2022, and as such, the firm believes Q2 could be the bottom in terms of orders in 2023. B. Riley believes the company’s cloud business and market share gain will be the major catalysts going forward. The firm reiterates a Buy rating on Extreme Networks shares with a price target of $24, and says the competitor downgrade creates a buying opportunity.

Published first on TheFly

See the top stocks recommended by analysts >>

Read More on EXTR:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles