Extreme Networks’ ‘overdone’ selloff a buying opportunity, says Rosenblatt

Rosenblatt analyst Mike Genovese raised the firm’s price target on Extreme Networks to $23 from $22 and keeps a Buy rating on the shares, which are still the firm’s top pick, after the roughly 20% selloff that has followed the company’s "beat and raise" quarterly report. The stock is down because Q2 product book-to-bill came in at 0.9 times and backlog decreased $13M sequentially, said Rosenblatt, which adds that "orders were not bad" and Extreme is "still doing slightly better than its industry peers." The company additionally announced CFO Remi Thomas is leaving for another job and his departure "was unexpected," but his reason for switching jobs, which is to lead a company through the IPO process, is "valid and is not indicative of any problems at Extreme," said the firm, which views the "overdone" selloff as one that presents a buying opportunity.