Takeover Chatter Boosts Shares of NetApp (NTAP)
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Price: $100.14 -0.76%
Overall Analyst Rating:
NEUTRAL (
Down)
Dividend Yield: 3.1%
EPS Growth %: +16.2%
Overall Analyst Rating:
NEUTRAL (
Down)Dividend Yield: 3.1%
EPS Growth %: +16.2%
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Shares of NetApp, Inc. (NASDAQ: NTAP) are moving higher this morning, as chatter heats up that they may soon be a takeover target.
NetApp is a leading vendor of innovative storage and data management solutions that help organizations around the world store, manage, protect, and retain their data. Long viewed as a takeover target, the recent low valuation might make the company irresistible to companies like International Business Machines Corp (NYSE: IBM), Oracle (NASDAQ: ORCL), or Cisco Systems (NASDAQ: CSCO), according to a Bloomberg Real M&A article.
NetApp has been losing market share to its biggest competitor, EMC Corp. (NASDAQ: EMC) and as a result the stock price has dropped. But EMC is too big for an acquisition, according analysts, which makes NetApp all the more appealing.
"They've kind of been serial underperformers with respect to delivering on their guidance over the last 18 months,” Mark Moskowitz, an analyst with JPMorgan, told Bloomberg. "A lot of investors are like, 'I don't need this'."
As a result, the price has dropped to levels that make it appealing, according to Shelby Seyrafi, an analyst with FBN.
"At these levels, I think the company's a very attractive target," Seyrafi said. "A potential acquirer may say, 'We may need to strike sooner before they beat that lower bar or come out of their seasonally weak quarter and people realize that this is still a high quality company'."
NetApp is a leading vendor of innovative storage and data management solutions that help organizations around the world store, manage, protect, and retain their data. Long viewed as a takeover target, the recent low valuation might make the company irresistible to companies like International Business Machines Corp (NYSE: IBM), Oracle (NASDAQ: ORCL), or Cisco Systems (NASDAQ: CSCO), according to a Bloomberg Real M&A article.
NetApp has been losing market share to its biggest competitor, EMC Corp. (NASDAQ: EMC) and as a result the stock price has dropped. But EMC is too big for an acquisition, according analysts, which makes NetApp all the more appealing.
"They've kind of been serial underperformers with respect to delivering on their guidance over the last 18 months,” Mark Moskowitz, an analyst with JPMorgan, told Bloomberg. "A lot of investors are like, 'I don't need this'."
As a result, the price has dropped to levels that make it appealing, according to Shelby Seyrafi, an analyst with FBN.
"At these levels, I think the company's a very attractive target," Seyrafi said. "A potential acquirer may say, 'We may need to strike sooner before they beat that lower bar or come out of their seasonally weak quarter and people realize that this is still a high quality company'."
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