Barclays Downgrades NetApp (NTAP) as Storage Buyers Loving EMC (EMC) Devices
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Price: $36.89 -1.05%
Rating Summary:
17 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
17 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade NTAP Now!
Shares of NetApp (Nasdaq: NTAP) are down more than 2.5 percent at last check following an earlier downgrade from Barclays' Ben Reitzes. The analyst now rates the stock an Equalweight, down from Overweight previously. Reitzes' price target was lowered modestly from $35 to $34.
Reitzes said, "Our checks indicate incremental competitive pressures from EMC VNX products in the channel, including at Arrow (18% of NetApp revenue) and Avnet (13% of NetApp revenue). Also, our checks with storage buyers indicate significant interest in EMC's Isilon product line - with pent-up demand especially into the new Isilon software upgrade this fall. We believe that Isilon is making inroads in financial services and other key verticals."
In addition to fears related to increased competition, the Barclays analyst also noted worry over the macro environment and eventual currency impacts.
With shares of NetApp last trading around $30.44, Reitzes new price target implies potential upside of nearly 12 percent.
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Reitzes said, "Our checks indicate incremental competitive pressures from EMC VNX products in the channel, including at Arrow (18% of NetApp revenue) and Avnet (13% of NetApp revenue). Also, our checks with storage buyers indicate significant interest in EMC's Isilon product line - with pent-up demand especially into the new Isilon software upgrade this fall. We believe that Isilon is making inroads in financial services and other key verticals."
In addition to fears related to increased competition, the Barclays analyst also noted worry over the macro environment and eventual currency impacts.
With shares of NetApp last trading around $30.44, Reitzes new price target implies potential upside of nearly 12 percent.
Visit our Analyst Ratings page to track all the market-moving analyst action on shares of NetApp.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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