Reasons Why Hedge Funds are Betting on Extreme Networks (EXTR)

Extreme Networks (NASDAQ:EXTR) is one of the 11 best communication equipment stocks according to hedge funds.

On January 29, the price target on Extreme Networks (NASDAQ:EXTR) was reduced from $21 to $17 by UBS analyst David Vogt. The analyst reaffirmed his Neutral rating on the stock based on UBS’s stance to stay on the sidelines. This stance is based on the company’s mixed quarter two results.

On January 28, Ryan Koontz from Needham reduced his target price for Extreme Networks (NASDAQ:EXTR) from $24 to $21. The analyst reaffirmed a Buy rating on the stock, which still offers a revised upside potential of almost 38%.

Koontz has attributed his rating to the company’s impressive second-quarter results, posting revenue and EPS that exceeded consensus forecasts. He also noted an upward revision in revenue guidance for 2026 by the management. During the quarter, Extreme Networks (NASDAQ:EXTR) exhibited strength in recurring revenue through SaaS, along with growth indicators across the EMEA region.

Extreme Networks (NASDAQ:EXTR) develops and sells network infrastructure equipment and software to enterprise clients, offering AI-driven cloud solutions that are secure and automated. Its various service offerings are clubbed under ExtremeCloud IQ, ExtremeCloud IQ-Site Engine, and ExtremeCloud IQ Essentials categories. The company also provides hardware and software solutions for network management, analytics, and security.

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Disclosure: None. This article is originally published at Insider Monkey.