Collins Stewart Raises Estimates on NetApp (NTAP) Following Strong 2012 Guidance and Bullish Outlook
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Price: $205.39 -0.82%
Rating Summary:
23 Buy, 31 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
23 Buy, 31 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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Following NetApp's (NASDAQ: NTAP) 2011 analyst meeting yesterday, June 30, Collins Stewart is reiterating its Buy rating and $68 price target on its shares.
The company announced that it plans on spending $800 million in 2012 on R&D to support continued investment in its unified storage architecture, which is extremely high considering a company like Dell (Nasdaq: DELL) only spends $800 million in R&D for its entire company.
NetApp's main message was that its differentiation remains a rich set of unified enterprise storage features including thin provisioning, primary duplication, snap-shots, & many others.
During the meeting, NTAP highlighted a new theme they titled Big Data. Big Data means three things from an application standpoint, data analytics, big bandwidth, and content. The company is attacking the Big Data opportunity with enhancements to core ONTAP 8.1, and with Engenio.
NetApp reiterated its guidance for the July quarter, but released its 2012 outlook ahead of the Street's expectations. The company forecasts that revenue will come in between $6.6 billion and $6.94 billion while its EPS is expected to ranger between $2.46 and $2.62.
As a result of the company 2012 guidance, the firm is raising its 2012 revenue and EPS estimates from $6.58 billion and $2.43 to $6.77 billion and $2.55. Collins Stewart also raised its 2013 estimates from $7.45 billion and $2.80 to $7.67 billion and $2.91.
For more ratings news on NetApp click here and for the rating history of NetApp click here.
Shares of NetApp closed at $52.78 yesterday.
The company announced that it plans on spending $800 million in 2012 on R&D to support continued investment in its unified storage architecture, which is extremely high considering a company like Dell (Nasdaq: DELL) only spends $800 million in R&D for its entire company.
NetApp's main message was that its differentiation remains a rich set of unified enterprise storage features including thin provisioning, primary duplication, snap-shots, & many others.
During the meeting, NTAP highlighted a new theme they titled Big Data. Big Data means three things from an application standpoint, data analytics, big bandwidth, and content. The company is attacking the Big Data opportunity with enhancements to core ONTAP 8.1, and with Engenio.
NetApp reiterated its guidance for the July quarter, but released its 2012 outlook ahead of the Street's expectations. The company forecasts that revenue will come in between $6.6 billion and $6.94 billion while its EPS is expected to ranger between $2.46 and $2.62.
As a result of the company 2012 guidance, the firm is raising its 2012 revenue and EPS estimates from $6.58 billion and $2.43 to $6.77 billion and $2.55. Collins Stewart also raised its 2013 estimates from $7.45 billion and $2.80 to $7.67 billion and $2.91.
For more ratings news on NetApp click here and for the rating history of NetApp click here.
Shares of NetApp closed at $52.78 yesterday.
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