William Blair Downgrades NetApp (NTAP) to Market Perform, 'cloud business has hit a wall in recent quarters'

September 18, 2023 5:10 AM EDT
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(Updated - September 18, 2023 7:02 AM EDT)

William Blair analyst Jason Ader downgraded NetApp (NASDAQ: NTAP) from Outperform to Market Perform.

The analyst comments "NetApp’s cloud services offerings have become an increasingly large and strategic part of the business. In its most recently reported quarter (ending July 31, 2023), the firm reported cloud services ARR of $619 million and cloud revenue of $154 million (8% of total NetApp revenue). However, after an approximate doubling of Cloud ARR over the last two years (including acquisitions), growth in NetApp’s cloud business has hit a wall in recent quarters (cloud ARR flat sequentially and up only 6% year-over-year in the most recent quarter). Before getting into the reasons for this slowdown, we lay out the core components of NetApp’s cloud portfolio below."

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 $77.72 yesterday.

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