Wunderlich Securities Starts NetApp (NTAP) at Hold, Stock Viewed as Fairly Valued

Wunderlich Securities initiates coverage on NetApp (NASDAQ: NTAP) with a Hold rating and a price target of $44.00.

Analyst Kaushik Roy said, "NTAP sells mid-range and high-end data storage systems to enterprises. NetApp augmented its product portfolio in May 2011 when it purchased LSI Corporation's (LSI-NR) storage systems business (Engenio) for $480mm (at approximately 0.7x sales). Nonetheless revenue growth has slowed down in the last couple of years and we are modeling total revenues to grow 1.3% and 1.6% in FY2015 and FY2016, respectively. NetApp is a good technology company but because of our estimated low single-digit revenue growth rate, we believe it is unlikely that the stock would command a premium multiple in the foreseeable future. We believe that NTAP's stock is fairly valued at this time."

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 $37.85 yesterday.

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