Susquehanna Bullish On NetApp (NTAP) Growth Potential Through 2018

Susquehanna remains Positive on NetApp (NASDAQ: NTAP), keeps price target of $46.00.

Analyst Mehdi Hosseini believes NetApp has the ability to expand Product Gross Margins and improve EPS along with investor sentiment.

Hosseini comments "We continue to believe NTAP is well-positioned to drive Y/Y Revenue growth in FY18 (~4% vs. Consensus of 1% growth) underpinned by continued Clustered ONTAP (cDOT) adoption - complemented by a strong ONTAP 9 release, as well as continued gains in its All-Flash portfolio. Moreover, we believe SolidFire can become more material to FY18, particularly as NTAP looks to leverage its IP to cultivate more software-defined offerings (perhaps in the realm of hyper-converged solutions, or HCI) - though we acknowledge NTAP still does not possess a true HCI solution. In conjunction with our above-Consensus view on Rev growth, we believe NTAP also possesses flexibility in reducing Product costs - namely in the use of ODMs for commodity hardware outsourcing."

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 $35.23 yesterday.

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