Jefferies Starts NetApp (NTAP) at Hold, Sees Risk of Share Loss to EMC's Isilon

Jefferies initiates coverage on NetApp (NASDAQ: NTAP) with a Hold. PT $35.00.

The firm comments, "We believe the crisp execution and high quality management team are hampered by a relatively high valuation, a decline in its OEM business providing a headwind to growth, and risk of share loss to Isilon in the enterprise in 2013. As an offset, we think NetApp is an attractive acquisition target for IBM, Oracle, or Cisco as storage is one of the most critical pieces in the cloud data center and that NAS (which NetApp is a leader in) will remain very relevant and may become even more important in a world filled with multimedia and unstructured data."

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 $35.51 yesterday.

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