RBC Capital Raises Price Target on NetApp (NTAP) to $32 Following 1Q Beat

August 18, 2016 8:53 AM EDT
Get Alerts NTAP Hot Sheet
Price: $36.36 +1.48%

Rating Summary:
    10 Buy, 35 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
Trade NTAP Now!
Join SI Premium – FREE

Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.

RBC Capital reiterated a Sector Perform rating on NetApp (NASDAQ: NTAP), and raised the price target to $32.00 (from $29.00), following the company's 1Q earnings report. NetApp posted revenue of $1.29B and non-GAAP EPS of $0.46 vs. consensus expectations of $1.26B/$0.36.

Analyst Amit Daryanani commented, "NTAP's positive Jul-qtr print/in-line Octqtr guide should provide investors with some level of comfort around the company's near-term revenue stabilization/cost reduction story. Management also outlined aspirations of: 1) 15-17% operating margin in FY17 (implies ~18% op margins for H2:17), 2) a return to growth in product revenue in H2:17, and 3) revenue growth exiting FY17. The company also provided high level targets of "moderated" revenue growth and 18% operating margin for FY18. While the near/medium-term outlook should be positive for NTAP, we note that attaining these ambitions would hinge on the company's ability to revert to consistent product revenue stabilization, maintain positive service/software growth and successfully execute on its cost reduction plans. Given better contributions from SolidFire and growth in strategic products (all-flash, hybrid cloud, OnCommand Insight, etc.) we think there is a bridge to achieve these targets, but wait for a better history of execution before we become more positive on the name. Maintain SP rating and raising price target to $32."

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

RBC Capital, Earnings

Add Your Comment