Extreme Networks (EXTR): Small Acquisition Should Contribute to Earnings in 2H17 - Needham
- Major stock indexes rise again to new records
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- Third-Party Said Interested in PrivateBancorp (PVTB) as CIBC (CM) Deal is Delayed
- Insys Therapeutics (INSY) Sinks as Former Employees Arrested in Racketeering Scheme
- Lower for longer, ECB scales back asset buys
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Needham & Company Buy Extreme Networks (NASDAQ: EXTR) price target of $4.75 (from $4.30) after the company bought Zebra’s wireless business. The transaction should close in CY4Q and based on the change-over from sell-in to sell-out accounting in the channel, it will likely show up in revenues for half of CY4Q.
Zebra was losing money in this business but EXTR is not taking all of the overhead and other costs. EXTR expects the unit to be solidly profitable as configured under the deal metrics. GMs are expected to be in the 45-48% range, at least initially. Wireless now accounts for 30% of revenues and should help drive higher growth rates.
Shares of Extreme Networks closed at $4.23 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on SecureWorks Corp. (SCWX) to $13
- RBC Keeps United Natural Foods (UNFI) at 'Sector Perform' Following Q1 Report; Notes Cloudier Visibility
- UPDATE: Stifel Downgrades CEB Inc (CEB) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesNeedham & Company, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!