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Summit Redstone Re-Starts NetApp (NTAP) at Sell

June 22, 2016 6:19 AM EDT
Get Alerts NTAP Hot Sheet
Price: $105.22 --0%

Rating Summary:
    20 Buy, 29 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 8 | New: 10
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Summit Redstone relaunches coverage on NetApp (NASDAQ: NTAP) with a Sell rating and a price target of $20.00.

Analyst Srini Nandury commented, "We are relaunching coverage of Netapp (NTAP) with a SELL rating and a $20 PT. While NetApp is cheap by almost all metrics, revenue continues to decline as the core business is under assault from AFA (All Flash Arrays) and the delays in upgrading to Cluster ONTAP by the install base. Amongst the major storage OEMs, NetApp continues to face the brunt of the secular trends impacting the storage industry. The storage industry remains in flux driven by some workloads moving to Cloud and by the arrival of hyper-converged infrastructure that crimps growth of network storage. On top of this, NetApp install base is going through a major product transition as the company’s customers are being forced to upgrade to Cluster ONTAP from the standalone version. The cluster ONTAP transition is a forklift upgrade and many customers are beginning to consider alternative platforms. Given this, we believe in the near-term NetApp revenue will continue to decline, despite being offset by the growth of its own AFA offerings. Therefore, we await for the revenue to stabilize before we can recommend the stock."

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 $25.32 yesterday.



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Srini Nandury