Extreme Networks (EXTR) unveiled one of its "most ambitious product cycles" in years at its annual Connect conference, with its expanding artificial intelligence-driven networking platform and improving competitive position could support "accelerating revenue growth" and market-share gains, Oppenheimer said in a report emailed Thursday.
Platform ONE is "exceeding expectations" within 10 months of launch, with new support for third-party devices expected to help customers migrate from "legacy vendors" while strengthening its position in cloud-managed networking, the report said.
The company introduced Agent ONE, an AI-powered "upgrade" to Platform ONE, while also launching the Extreme Exchange, an "AI skills marketplace," the report noted.
The company also "broadened" its Wi-Fi 7 portfolio and added Cloud PKI security capabilities that will pull in security spend to the networking platform.
The firm noted channel checks suggesting that stabilizing post-COVID pricing trends, and improving "pricing power" should accelerate revenue growth into next year. Also, supply constraints and price increases at Cisco Systems (CSCO) could create a "major opportunity" for Extreme Networks to gain market share, Oppenheimer said.
Oppenheimer has an outperform rating on Extreme Networks, with a price target of $25.
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