CIBC World cut the estimates and target price on Extreme Networks (EXTR ).
Analyst Steve Kamman says the company's pre-announcement falls below his $0.09 Q3 EPS estimate with 60%-70% of revenues coming from the enterprise market. He says the shortfall suggests that technology investment is dropping in the broader corporate market as well as in the service-provider market. Kamman expects to see further weakness in Europe and Asia during the next few months and says he remains cautious on his outlook at this point.
Kamman cut the $0.39 fiscal 2001 (June) EPS estimate to $0.14, and sees $0.69 fiscal 2002 EPS. He also cut the $30 target to $20 and rated shares buy.