Needham & Company Maintains a 'Buy' on NetApp (NTAP); FY12 Guidance Unchanged but More Challenging

Needham & Company maintains a 'Buy' on NetApp (NASDAQ: NTAP) price target lowered to $51 from $67.

Needham analyst says, "Environment remains unsettled but probably adequate to maintain F12 guidance ($2.46-2.62 on $6.6-6.9B) baring further deterioration. EPS relatively more secure than rev. on strong GM% and better OPEX control...F2Q guide: NG EPS of $0.58-0.62 on rev. $1.5B-1.6B vs. street prior $0.61 on $1.6B. GM 63.5% vs. our prior 62.4%; OpM ~18.5% vs. our 18.5%, higher tax rate of 18.7% on heavier mix of US profits, and lower share count of ~392M due to lower avg. stock price." (Lowers FY13 EPS estimate from $2.82 to $2.77)

For more ratings news on NetApp click here and for the rating history of NetApp click here.

Shares of NetApp closed at $41.66 yesterday.

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