Markets & Finance

Extreme Networks Downgraded to Hold on Valuation

Investment house Needham downgraded network switching company Extreme Networks (EXTR) stock to hold from buy due to valuation and raised the price target on the stock to $36, up from $35. Analyst A.A. LaFountain said the company is well positioned to benefit from expansion of gigabit Ethernet into metropolitan area network markets, providing a low-cost product for that segment.

LaFountain noted the development of the company's next-generation 10 GigE will likely enhance long term outlook. The stock has reached levels above his $35 target. The analyst sees earnings per share of $0.31 in fiscal year 2001.

Shares of Extreme Networks were down 4-1/8 at 41-3/8.

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