EXTR - Extreme Networks: Back For Another Look

2024-04-14 11:26:17 ET

Summary

• The stock of Extreme Networks has fallen sharply recently due to a falloff in equipment sales blamed on distribution adjusting inventory levels following Covid shortages.
• However, the company is still seeing solid growth from its SaaS and support revenues and solid free cash flow as well.
• Is it too soon to buy the dip with improving prospects by the end of this fiscal year? An analysis around Extreme Networks follows in the paragraphs below.

Today, we put Extreme Networks ( EXTR ) in the spotlight. This small cap SaaS stock was a member of the model portfolio at The Insiders Forum from February of 2020 to February of 2023 where it more than tripled. However, the company has seen some challenges, and the stock has fallen 40% since it was removed from the Insiders Forum selections and by nearly two-thirds from its peak in the second half of 2023. Are the shares back in the ' buy zone ' yet? An analysis follows below....

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