Needham Ups Target on Extreme Networks (EXTR) After Strong Earnings

Extreme Networks, Inc. (NASDAQ:EXTR) is one of the most undervalued cybersecurity stocks to buy now. On August 7, Needham maintained its Buy rating on Extreme Networks, Inc. (NASDAQ:EXTR). Needham increased its price target from $20 to $24. That represents a juicy 21% upside from the current levels of $19.75. The recent rise in price target comes after the company delivered robust Q4 FY 2025 earnings. The company also guided FY26 ahead of consensus.

Needham Ups Target on Extreme Networks (EXTR) After Strong Earnings

Extreme Networks, Inc. (NASDAQ:EXTR) reported a revenue of $307 million, a nearly 20% increase on a year-over-year basis. That said, the company is still struggling to make ends meet, reporting a net loss of $7.80 million. According to Needham, though,  the company reported a record net new SaaS ARR of $24 million and is showing strength in the APAC and EMEA regions.

Needham added in its research note that the company’s new Platform ONE launch in the September quarter should drive slow, steady acceleration in ARR and its differentiated campus fabric architecture to generate up-market share gains.

While we acknowledge the potential of EXTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EXTR and that has a 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.