NetApp (NTAP): Good Quarter, Raising PT - Jefferies

August 18, 2016 7:11 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
Trade NTAP Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Jefferies analyst, James Kisner, reiterated his Hold rating on shares of NetApp (NASDAQ: NTAP) and raised his price target to $29.00 (from $24.00).

NetApp printed a solid Q1 beat driven by modest revenue upside and good expense control. Guidance was in line and the analyst was encouraged to see product margins stabilize with strong performance of NetApp's all flash products. Some concerns remain however, about NetApp's position in a highly competitive storage market.

NTAP reported FQ1 (Jul) revenue of $1.29B, above the Street's $1.26B. Q1 EPS totaled $0.46, beating the Street's $0.36. Gross margin reached 62.4% (Street = 62.2%). Product gross margin was 46.7%, above our 44% expectation and essentially flat Q/Q. Operating expenses were less than expected at $652M (Street = $666M). G&A was particularly light at $59M vs. our $75M; the company attributed the low G&A to ongoing cost reduction efforts.

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 $28.85 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Jefferies & Co

Add Your Comment