UBS Raises price Target on NetApp (NTAP) as Shares Trade up

August 24, 2016 9:29 AM EDT
Get Alerts NTAP Hot Sheet
Price: $36.27 -0.58%

Rating Summary:
    10 Buy, 35 Hold, 11 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 18 | New: 19
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UBS maintained a Sell rating on NetApp (NASDAQ: NTAP), and raised the price target to $30.00 (from $21.00), as the company trades up to a recent $34. In a recent call, management said NetApp's main problem was execution rather than strategy, sending the stock lower. Since then, however, there have been moves beyond cost cutting. NetApp also seems to be benefiting from the customers view that it is easier to buy flash technology from your existing than a new vendor.

Analyst Steven Milunovich commented, "NetApp's better than expected quarter and stock jump to $34 surprised us. We have been concerned about share and margin declines since downgrading in October. Has the company turned the corner? We are hesitant to draw that conclusion based on one quarter's evidence. However, there has been improvement, which we attribute to (1) new management led by CEO George Kurian, and (2) success with the all-flash FAS line boosting strategic revenue. We are increasing our estimates to $2.40 for F17 with FCF above $3.00 per share in F18 and raising our price target to $30 (from $21)."

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 $34.99 yesterday.



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