Extreme Networks upgraded to Buy from Neutral at Rosenblatt

Rosenblatt upgraded Extreme Networks to Buy from Neutral with a price target of $17, up from $15. The firm had downgraded Extreme to Neutral a few months ago, citing a lack of near-term catalysts, but it now believes Q3 was the bottom for revenues and margins and notes that revenues are expected to grow sequentially from here, including in Q1 of FY25, as the company fully moves past its channel inventory issue. There are product drivers like WiFi 6E and 7, Security and AI, adds the firm, which contends that Extreme has “a compelling business model with growing SaaS and recurring revenues.”