Needham & Company Downgrades Extreme Networks (EXTR) to Hold

Needham & Company downgraded Extreme Networks (NASDAQ: EXTR) from Buy to Hold following the company's Q3 warning.

Analyst Alex Henderson commented, "Extreme beat us to the punch line. We have been getting increasingly concerned about Extreme for several months and have issued several cautious notes -- after the close Extreme pre-released negative results. Extreme is perhaps the most exposed of any company in our coverage to the Euro exchange rate swings. It has 39% of 2014 revenues from Europe. Even without currency issues it has been struggling to get any growth, and restructuring improvements and cross-selling have been almost fruitless. We were already becoming more negative on the name, and now we capitulate and downgrade to Hold."

The firm cut FY 2015 EPS from $0.08 to $0.07 and FY 2016 EPS from $0.26 to $0.21.

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 $3.24 yesterday.

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