UPDATE - Canaccord Genuity Upgraded NetApp (NTAP) to Buy; Re-Acceleration
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Price: $101.60 +0.68%
Rating Summary:
20 Buy, 29 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 14 | New: 16
Rating Summary:
20 Buy, 29 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 14 | New: 16
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UPDATE - Canaccord Genuity upgraded NetApp (NASDAQ: NTAP) from Hold to Buy. PT upped from $58.50 to $62.
Canaccord analyst, Paul H. Mansky, said, "The cornerstone of our thesis is what appears to be a re-accelerating core NetApp, following very favorable channel checks on April into July. This fundamental strength positions the company to deliver if not exceed margin targets set forth with the Engenio acquisition (closed May 9). With EBIT margin trending up through the coming year, revenue growth of >30% and earnings power of $2.30 or better, we see multiple expansion back to recent highs (28-29x), driving the stock to $62 or better over the coming year."
"For the full year (2012), we are modeling classic NetApp revenue of $5.95B vs. our prior $5.80B and consensus of $5.86B. We now include $708M from Engenio (vs. $750M guide) for a combined $6.65B (+32%). Our gross margin forecast, as a percent, is reduced 296bp to 61.3% (vs. 300bp guide) while opex synergies offset by 196bp for a pro forma 17.6% EBIT margin. At a 17.5% tax rate this translates to $2.30 in EPS vs. our prior $2.17 and consensus $2.25."
To see all upgrades/downgrades on shares of NTAP, visit our Analyst Ratings page.
Canaccord analyst, Paul H. Mansky, said, "The cornerstone of our thesis is what appears to be a re-accelerating core NetApp, following very favorable channel checks on April into July. This fundamental strength positions the company to deliver if not exceed margin targets set forth with the Engenio acquisition (closed May 9). With EBIT margin trending up through the coming year, revenue growth of >30% and earnings power of $2.30 or better, we see multiple expansion back to recent highs (28-29x), driving the stock to $62 or better over the coming year."
"For the full year (2012), we are modeling classic NetApp revenue of $5.95B vs. our prior $5.80B and consensus of $5.86B. We now include $708M from Engenio (vs. $750M guide) for a combined $6.65B (+32%). Our gross margin forecast, as a percent, is reduced 296bp to 61.3% (vs. 300bp guide) while opex synergies offset by 196bp for a pro forma 17.6% EBIT margin. At a 17.5% tax rate this translates to $2.30 in EPS vs. our prior $2.17 and consensus $2.25."
To see all upgrades/downgrades on shares of NTAP, visit our Analyst Ratings page.
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