Extreme Networks Stock Up as JMP Sees Resurgent Demand

Extreme Networks shares jumped Friday after JMP analyst Erik Suppiger offered enthusiastic commentary for the cloud-driven-networking company.

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Extreme shares recently traded at $4.91, up 19%. They’d climbed 7% year to date through Thursday.

Suppiger has an outperform rating and a $6 share-price target for the San Jose, Calif., company.

Extreme produced “strong execution” and better operating leverage in the fiscal 2021 first quarter, he wrote in a commentary cited by Bloomberg.

“We are encouraged with the company’s relative improvement, as we believe it suggests that demand sustained its recovery across the sector after a severe shortfall in” the fiscal 2020 third quarter, he said.

Suppiger says Extreme can reach its target of double-digit revenue growth for the fiscal 2021 third quarter.

He sees a high-single-digit drop for first-quarter revenue. That’s a “significant improvement” from the mid-teens slide in the second half of fiscal 2020, Suppiger noted.

In other technology news, NXP Semiconductors raised its guidance Thursday for the third quarter based on better-than-expected performance, particularly in its automotive and mobile end markets.

“Relative to the midpoint of our guidance, we experienced material improvement in demand across all end markets, but particularly in the automotive and mobile end markets,” Kurt Sievers, NXP president and chief executive, said in a statement.

The company sees revenue for the quarter coming in even with a year earlier, at $2.27 billion, vs. previous expectations of a 12% decline.

It said non-GAAP operating profit for the period will be $586 million compared with previous expectations of $444 million.

This article was originally published by TheStreet.

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