Needham & Company upgraded Extreme Networks (NASDAQ: EXTR) from Hold to Buy with a price target of $3.75, saying the stock is too oversold.

Analyst Alex Henderson commented, "We believe Extreme is making the right decisions, demonstrating improvements in its go-to-market strategy, finishing significant investments in training and service capabilities, and is now poised to pivot top growth. You wouldn't know it from the recent stock action, though --- down over 30% post a pretty good quarter and solid top-line guide. In addition, we estimate Extreme will generate $0.50-0.75 in cash to go with the $0.23 already on the balance sheet. By the end of CY17, this would put EXTR at just 5.5x EV/E. We think the stock can and will rebound as these stronger trends and trajectories become increasingly evident. Accordingly, we upgrade EXTR to Buy and set a target price that simply has EXTR rebounding to the recent levels."

For an analyst ratings summary and ratings history on Extreme Networks click here. For more ratings news on Extreme Networks click here.

Shares of Extreme Networks closed at $2.76 yesterday.