NetApp (NTAP) Could See Marginal Upside, But EMC (EMC) Still Preferred - Lazard

June 6, 2013 11:13 AM EDT Send to a Friend
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Price: $40.72 +1.04%

Rating Summary:
    16 Buy, 30 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Lazard Capital is out with a few comments on NetApp (Nasdaq: NTAP) following Q4 results and news issued on May 21st. The firm maintains a Neutral rating on the name and prefers larger rival EMC Corp (NYSE: EMC) instead.

Analyst Edward Parker said, "With the July Q guide out of the way and on the heels of a strong capital allocation announcement, the stock has a number of things going for it for the rest of the year. Bottom-line ests. could see upward pressure, principally on share repurchases and opex realignments but also from top-line growth, driven by a new product cycle and the potential for storage refresh/improving capacity demands. Concerns around weakness in OEM and federal persist, but are being de-risked from expectations."

FY14 EPS estimate moves from $2.61 up to $2.77 to account for $2 billion in buybacks.

Capacity growth rates suggest sluggish demand, though NetApp "appears to have a firming handle on what it can control."

Shares of NetApp are up about 0.5 percent Thursday.

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 $37.31 yesterday.


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