NetApp (NTAP) PT Raised to $120 at UBS Following Beat-and-Raise Quarter

UBS analyst David Vogt raised the price target on NetApp (NASDAQ: NTAP) to $120.00 (from $114.00) while maintaining a Neutral rating.

The analyst commented, "NetApp reported a solid quarter with revenue +4% ex-Spot, 2% above our est while GM of 72.6% ('Product' 59.5%) surprised to the upside as well. While the market was bracing for a cut to the FY26 outlook given higher commodity costs (NAND/DRAM), the gross and operating margin guide was lifted ~70 bps leading to a positive ~2% EPS revision at the mid-point. However, with enough supply to manage the higher commodity costs the next two quarters, investors will likely focus on potential margin headwinds in FY27 capping upside in the shares despite a solid beat and raise with the shares trading at an undemanding ~13.5x our CY27 EPS est of $8.59."

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