Brean Capital Remains Sidelined on NetApp (NTAP) Following Annual User Conference

Brean Capital reiterated a Hold rating on NetApp (NASDAQ: NTAP) after meeting with management at the company's annual user conference. NTAP highlighted its focus on providing data management capabilities across public, hybrid, and private cloud infrastructure through its Clustered Ontap storage operating system.

Analyst Ananda Baruah commented, "We met with NTAP’s management team in LV at its annual user conference. NTAP makes a case for being strongly positioned to be a leading storage provider that enables data management across public cloud, private cloud, and hybrid cloud platforms. We believe that NTAP is increasingly strengthening its storage value proposition offering under the leadership of CEO George Kurian for next generation data centers. We remind investors that in the Jul Q, Emerging Product sales (60% of product revs) is growing strong at 24% Y/Y (61% of product revenue this Q) and NTAP is vocally stating a return to overall revenue growth by Apr Q '17. With the ongoing cost alignment, NTAP is also guiding for OM expansion from the current 13% to 18% - 20% for FY18 (Apr). We note that the stock is trading at 6x EV/ ‘17 EBITDA."

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 $35.34 yesterday.

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