Banc of America Boosts Extreme Networks to 'Buy'
Banc of America upgraded Extreme Networks (EXTR ) to buy from market perform.
Analyst Shaw Wu believes the upcoming quarter could mark the bottom for the company. He narrowed his $0.03 Q4 loss estimate to a penny loss, and raised his $108.5 million revenue estimate to $110.1 million. He raised his $0.10 fiscal 2001 (June) EPS estimate to $0.12 and thinks the stock could potentially trade to the $30 range.
At Wednesday's close, Extreme Networks shares traded at five times the calendar 2001 sales, which is below the group average of seven times annual calendar sales. Wu believes Extreme Networks is one of the best-positioned firms, and is leading next-generation IP networking companies with superior technology and a strong market position.