Deutsche Bank Downgrades NetApp (NTAP) to Sell

September 26, 2016 7:41 AM EDT
Get Alerts NTAP Hot Sheet
Price: $36.41 +0.30%

Rating Summary:
    10 Buy, 35 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Deutsche Bank downgraded NetApp (NASDAQ: NTAP) from Hold to Sell with a price target of $25. Analyst Sherri Scribner said secular storage market challenges aren't reflected in valuation.

"We are downgrading NTAP to a Sell from a Hold. NTAP shares are up 45% over the past 3 months and up 35% year to date as the stock has benefited from (1) a market shift into value stocks, (2) modestly better-than-expected sales, and (3) significant cost cutting which has driven upside to margins and EPS. While we applaud management's increased cost discipline, we remain cautious on the company's ability to return to revenue growth given the significant secular challenges posed by flash-based storage and the cloud. We view NTAP as particularly exposed to these trends and thus believe shares should trade at a discount to peers," said the analyst.

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 $35.66 yesterday.



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