Jefferies Raises Price Target on NetApp (NTAP) to $38 Following 2Q and Guidance

November 17, 2016 9:05 AM EST
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Price: $36.37 +1.51%

Rating Summary:
    10 Buy, 35 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Jefferies reiterated a Hold rating on NetApp (NASDAQ: NTAP), and raised the price target to $38.00 (from $34.00), following the company's 2Q earnings report. NTAP reported revenue of $1.34B, a touch below Street's $1.35B. EPS totaled $0.60, beating the Street's $0.54 due to lower than expected opex. Management guided 3Q revenues of ~$1.4B, above the Consensus of $1.36B. 3Q EPS guidance calls for $0.72-$0.77, well above the Street's $0.65.

Analyst James Kisner commented, "NetApp reported a solid quarter with in-line revenue and an EPS beat driven largely by opex. Guidance for FQ3'17 was also above Consensus. However, there were some less encouraging signs in the quarter such as declining product revenue, tepid Strategic Solutions growth, and likely weak FQ3 product gross margins as implied by guidance. We continue to have some concerns about secular and competitive headwinds for NetApp in the legacy storage market."

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 $34.73 yesterday.

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