UPDATE: JPMorgan Upgrades NetApp (NTAP) to Overweight

JPMorgan analyst Samik Chatterjee upgraded NetApp (NASDAQ: NTAP) from Neutral to Overweight with a price target of $110.00 (from $108.00).

The analyst comments " NetApp (NTAP): Upgrade to Overweight as we see the company well positioned for a transition towards higher growth opportunities while leveraging its leading position in the Enterprise storage market, which is aided by the tailwinds in relation to Enterprise spending in the medium-term. NetApp is positioned to benefit from the transition of the hybrid cloud Enterprise infrastructure toward an increasing mix of all-flash arrays, and is incrementally supporting Enterprise adoption of public cloud architectures through its recent push in public cloud offerings. We believe large Enterprise customers remain preferential to leveraging traditional storage suppliers in their transition of applications and data to public cloud architectures (as demonstrated by F5 as well) , and NetApp has positioned itself better than expected through the integration of its ONTAP operating system across all environments to provide customers a seamless experience. NetApp’s success with its Enterprise customer base in relation to the public cloud offerings is demonstrated in the $1 bn ARR target for FY25 relative to (already raised) $510-$540 mn ARR target exiting FY22. The momentum of the public cloud solutions is also demonstrated in the recent partnership announced with AWS where the cloud provider will leverage FSx for NetApp ONTAP to provide fully managed storage in the AWS cloud for Enterprise customers. We raise our Dec-22 price target for NetApp to $110, implying 25% upside from current levels."

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 $88.89 yesterday.

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