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Wedbush Assumes Coverage on NetApp (NTAP) at Neutral; Shares Appropriately Valued as NT Headwinds and Competition May Limit Growth Prospects

January 10, 2012 5:29 PM EST
NTAP Hot Sheet
Rating Summary:
    17 Buy, 15 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush assumes coverage on NetApp (NASDAQ: NTAP) with a Neutral. PT $40.00 (from $60).

Wedbush analyst said, "Despite our near-term concerns, we believe NetApp is well positioned given a solid secular growth story driven by the need for increased storage requirements due to strong growth in data-rich applications and the proliferation of cloud and virtualized environments. However, we think positive long-term trends are taking a backseat to concerns that could jeopardize the NetApp’s near-term revenue and EPS estimates—such as the potential for a slowdown in the storage market, moderating Engenio OEM growth, intensifying competition and exposure to Europe and the U.S. public sector."

Wedbush raises FY12 EPS estimate from $2.22 to $2.37, raises FY12 revs from $5.675 bln to $6.197 bln.

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 $35.04 yesterday, with a 52 week range of $33.00-$61.02.


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