Extreme Networks price target lowered to $15 from $19 at Craig-Hallum

Craig-Hallum analyst Christian Schwab lowered the firm’s price target on Extreme Networks to $15 from $19 and keeps a Hold rating on the shares. Extreme Networks is seeing channel inventory reductions accelerate significantly in Q3 which, along with a continued elongated sales cycle in North America, drove their Q3 revenue outlook to be down over 30% sequentially and over $100M below consensus expectations, the firm says. Craig-Hallum believes the company’s own elevated inventory levels could present a risk to potentially more aggressive pricing in order to move the inventory but less so to technology obsolescence.