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