NetApp (NTAP) PT Raised to $114 at UBS as FY Guide Reaffirmed

UBS analyst David Vogt raised the price target on NetApp (NASDAQ: NTAP) to $114.00 (from $108.00) while maintaining a Neutral rating.

The analyst commented, "Against an uncertain macro backdrop across EMEA and the government verticals, NetApp reported rev of $1.56B vs our $1.56B est. Adjusting for the sale of the 'Spot' asset last yr, PF rev YoY growth was ~3% against the toughest comp from last year. The all-flash C-Series continues to drive share gains as ARR came in at $3.6B, up ~6% YoY, offsetting a decline in traditional drives. While revenue was broadly in-line, US govt and EMEA were pockets of top-line weakness. While not quantified, we estimate NetApps Federal (Fed) and State/Local/Ed (SLED) business was down substantially or more than 30% in the quarter. In addition to the air-pocket in the US public sector, 'Product' gross margin of 54% was soft missing our 55.9% estimate and will likely weigh on the shares in the near-term. That said, the FY26 guide was reaffirmed as expected while July/Oct should be the trough for 'Product' margin and demand."

You May Also Be Interested In

• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'