Analysts Offer Insights on Technology Companies: NetApp (NASDAQ: NTAP), Cerner Corp. (NASDAQ: CERN) and InvenSense (NYSE: INVN)

By Austin Angelo

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on NetApp (NASDAQ: NTAP), Cerner Corp. (NASDAQ: CERN) and InvenSense (NYSE: INVN).

NetApp (NASDAQ: NTAP)

In a report released yesterday, Alex Kurtz from Pacific Crest reiterated a Hold rating on NetApp (NASDAQ: NTAP). The company’s shares opened today at $38.45, close to its 52-week high of $39.

Kurtz said:

“We see a 0%-3% growth outlook and fair value at $38 based on 14x our F2018 EPS estimate, so we see NTAP as fully valued. What’s changed.”

According to TipRanks.com, Kurtz is a 4-star analyst with an average return of 4.1% and a 62.5% success rate. Kurtz covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Super Micro Computer, and CommVault Systems.

Currently, the analyst consensus on NetApp is Hold and the average price target is $33.69, representing a -12.4% downside.

In a report released today, Brean Capital also maintained a Hold rating on the stock.
Cerner Corp. (NASDAQ: CERN)

KeyBanc analyst Donald Hooker reiterated a Buy rating on Cerner Corp. (NASDAQ: CERN) yesterday and set a price target of $77. The company’s shares opened today at $49.01, close to its 52-week low of $48.04.

Hooker said:

“We reiterate our Overweight rating on CERN after attending the Company’s user conference. The unexpected election of Donald Trump as U.S. president creates near-term uncertainty for CERN’s population health businesses, in our view. However, we think CERN’s revenue cycle offerings should continue to grow comfortably in the double digits. Also, with an improved post-Trump environment for drug development, we continue to see an opportunity for CERN to materially expand its TAM by scaling its EHR installed base and clinical workflow expertise into the life sciences.”

According to TipRanks.com, Hooker is a 4-star analyst with an average return of 6.9% and a 66.0% success rate. Hooker covers the Technology sector, focusing on stocks such as Medidata Solutions, Quality Systems, and Athenahealth.

Currently, the analyst consensus on Cerner Corp. is Moderate Buy and the average price target is $67.25, representing a 37.2% upside.

In a report issued on November 2, Oppenheimer also reiterated a Buy rating on the stock with a $66 price target.
InvenSense (NYSE: INVN)

Pacific Crest analyst John Vinh reiterated a Buy rating on InvenSense (NYSE: INVN) yesterday and set a price target of $9. The company’s shares opened today at $7.93.

Vinh noted:

“We anticipate that design wins at Samsung and at China OEMs will drive a return to growth of 15% in F2018, as OEMs decide to enable their midrange handsets to be AR compliant. We believe InvenSense is likely to gain share in Samsung’s midrange handsets and with China OEMs Huawei and Xiaomi. We expect initial revenue contributions in F1Q18 (June), with more meaningful revenue in F2Q18 (Sept.). With the midrange segment of 400 million to 500 million units remaining largely unpenetrated, we see this as a meaningful opportunity for INVN. As InvenSense explores strategic options, we believe M&A represents a call option on our bull case. We see an increased likelihood that InvenSense will be acquired, as we note the company’s announcement regarding the exploration of strategic options and as our M&A model has scored the company as having a higher probability of being acquired. We view InvenSense’s motion sensors as highly strategic for companies looking to increase exposure into IoT and/or increase their content position in mobile.”

According to TipRanks.com, Vinh is a 4-star analyst with an average return of 5.0% and a 49.5% success rate. Vinh covers the Technology sector, focusing on stocks such as Silicon Laboratories, Dolby Laboratories, and NXP Semiconductors.

InvenSense has an analyst consensus of Moderate Buy, with a price target consensus of $9.