10 Best Telecom Stocks To Buy Right Now

04. Extreme Networks, Inc. (NASDAQ:EXTR)

Average Analyst Share Price Target Upside: 17.69%

Average Analyst Share Price Target: $15.90

Extreme Networks, Inc. (NASDAQ:EXTR) has seen a 40% drop in its stock price, largely due to a decline in equipment sales as distribution channels realign after COVID-induced shortages. Despite this, the company remains strong in SaaS and support revenue growth and generates healthy free cash flow. Analysts are divided on the stock’s future, with some forecasting a rebound, but recent insider sales suggest a cautious approach may be prudent. On August 7, Extreme Networks, Inc. (NASDAQ:EXTR) reported earnings with normalized EPS of -$0.08, missed by $0.21. Revenue was $256.65 million, surpassing expectations by $3.44 million. Despite the EPS shortfall, the revenue beat suggests stronger-than-anticipated sales performance and potential resilience. Extreme Networks, Inc. (NASDAQ:EXTR) has an average analyst price target of $15.90, representing a potential upside of 17.69%.

Alger Small Cap Growth Fund stated the following regarding Extreme Networks, Inc. (NASDAQ:EXTR) in its fourth quarter 2023 investor letter:

“Extreme Networks, Inc. (NASDAQ:EXTR) specializes in comprehensive, cloud-native networking solutions, combining the design and production of network infrastructure equipment with its exclusive cloud management platform and a wide range of applications. We consider their Wi-Fi and switching equipment and software to be among the top choices for enterprises, managed efficiently over the cloud. Their latest offering, universal equipment, now integrates computing, security, and Al capabilities directly at the enterprise level. This expands their Total Addressable Market (TAM) significantly. During the quarter, the company reported strong fiscal first quarter results, where revenues beat analyst estimates, resulting in margin expansion and higher than expected free cash flow generation. However, management lowered their fiscal full year revenue guidance, citing macroeconomic weakness as enterprises continue to delay network upgrades. As a result, shares detracted from performance.”