Extreme Networks (EXTR) is positioned to benefit from accelerating software-as-a-service adoption, campus networking demand, and increasing cloud-managed deployments, BofA Securities said Wednesday in a report.

SaaS annual recurring revenue is expected to accelerate from 22% in fiscal 2026 to 24% in fiscal 2027, driven by Platform ONE adoption and higher subscription attach rates, the report said.

BofA projects a 9% three-year revenue compound annual growth rate, above street estimates, supported by moderate market-share gains in wireless and campus switching.

BofA began coverage with a buy rating and a $24 price objective, valuing the stock at 17 times its estimated 2027 earnings, a level the firm said sits at a justified discount to networking peers.

Shares of Extreme Networks were up 3% in recent trading.

Price: 17.23, Change: +0.50, Percent Change: +2.99