Extreme Networks' Stock Bounces After Needham Says It's 'too Oversold'

Extreme Networks Inc.'s stock climbed 1.8% in early trade Monday, after the network infrastructure equipment seller was upgraded at Needham, which cited an attractive valuation. Analyst Alex Henderson raised his rating to buy, after being at hold since April 2015. He set a new stock price target at $3.75, which was 36% above Friday's closing price of $2.76. Henderson wrote in a note to clients that he believes the stock is "too oversold," as it plunged 30% in two days after the company reported on Thursday fiscal second-quarter results, which he described as "pretty good." The stock had closed Friday at a five-month low after the selloff. "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," Henderson wrote.