BMO Capital on NetApp (NTAP): Could Attract Interested Parties At These Levels; Prefers EMC
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Price: $99.42 +1.54%
Rating Summary:
20 Buy, 29 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
20 Buy, 29 Hold, 6 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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BMO Capital maintains an 'Outperform' on NetApp (NASDAQ: NTAP) price target lowered from $42 to $30.
Analyst, Keith Bachman, said, "We are lowering our Street low estimates materially. For CY2013, which sets our valuation, we are lowering our estimates from $2.71 to $2.35, or by 13%...Given that we think NTAP will generate about $3.10 in FCF in CY2013, and has about $11 in net cash on the balance sheet, NTAP trades about ~5x FCF. At these valuation levels, we would think some large organization should be interested."
Bachman strongly prefers EMC Corp (NYSE: EMC) over NTAP, citing more comprehensive product portfolio, larger sales force leading to added strength heading into earnings.
For an analyst ratings summary and ratings history on NetApp click here. For more ratings news on NetApp click here.
Shares of NetApp closed at $32.86 yesterday.
Analyst, Keith Bachman, said, "We are lowering our Street low estimates materially. For CY2013, which sets our valuation, we are lowering our estimates from $2.71 to $2.35, or by 13%...Given that we think NTAP will generate about $3.10 in FCF in CY2013, and has about $11 in net cash on the balance sheet, NTAP trades about ~5x FCF. At these valuation levels, we would think some large organization should be interested."
Bachman strongly prefers EMC Corp (NYSE: EMC) over NTAP, citing more comprehensive product portfolio, larger sales force leading to added strength heading into earnings.
For an analyst ratings summary and ratings history on NetApp click here. For more ratings news on NetApp click here.
Shares of NetApp closed at $32.86 yesterday.
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