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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: swisstrader who wrote (54483)	12/30/1999 6:00:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 108040

Ebullient Cowen comments on EXTR........To the extreme on Extreme Networks By Susan Lerner, CBS MarketWatch Last Update: 4:38 PM ET Dec 30, 1999 Analysts Ratings Market Pulse NEW YORK (CBS.MW) --SG Cowen analyst Chris Stix went all the way on Extreme Networks (EXTR: news, msgs) Thursday upgrading the company to a "strong buy" and boosting his price target to $125 from $105. Shares of the networking device maker responded with an 13 percent gain to 82 11/16, after rising as high as 90 intra-day. Calling the company "a leading pure play in the explosive growth layer-3 switching market" Stix told clients he expects Extreme to meet or exceed consensus revenue and earnings per share estimates for the second-quarter of fiscal 2000, with continued growth in its high margin, high growth modular layer-3 switch business. "Extreme has a broad product line and strong product cycle and is penetrating the service provider market, which represents significant opportunities," Stix said. Given the increased penetration of the service provider market, he said he thinks the company should trade at multiples closer to Foundry Networks (FDRY: news, msgs), which has established itself in the service provider market for layer-3 switches. Furthermore, Stix said he believes the Extreme's product transition to the newly released Inferno chipset is going better than expected, and he anticipates positive product announcements built on that chipset. Sales to service providers also represents a huge opportunity for the company, he said.