Drexel Hamilton Gives a Buy Rating to NetApp

By Carrie Williams

Drexel Hamilton analyst Brian White assigned a Buy rating to NetApp (NASDAQ: NTAP) today and set a price target of $62. The company’s shares closed yesterday at $46, close to its 52-week high of $47.20.

White wrote:

“We believe NetApp will meet our 2Q:FY18 revenue estimate of $1.40 billion (Street is at $1.38 billion) and slightly exceed our EPS projection of $0.70 (Street is at $0.69). We are modeling a 5% QoQ sales rise in 2Q:FY18 and inline with the average increase for October quarters over the past five years. Recall, NetApp’s 2Q:FY18 outlook calls for sales of $1.31-$1.46 billion with pro forma EPS of $0.64-$0.72.”

According to TipRanks.com, White is a 5-star analyst with an average return of 11.5% and a 64.5% success rate. White covers the Consumer Goods sector, focusing on stocks such as BlackBerry Limited, Juniper Networks, and Amphenol Corp.

Currently, the analyst consensus on NetApp is Moderate Buy and the average price target is $46.28, representing a 0.6% upside.

In a report issued on November 9, Barclays also upgraded the stock to Buy with a $52 price target.

Based on NetApp’s latest earnings report for the quarter ending July 31, the company posted quarterly revenue of $1.33 billion and quarterly net profit of $136 million. In comparison, last year the company earned revenue of $1.34 billion and had a net profit of $109 million.

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NetApp, Inc. engages in the provision of software, systems, and services for the management and storage of customer data. The company’s products include hybrid, enterprise all-flash, and cloud storages. Its patented unified scale-out fabric-attached storage platform uses the NetApp Data ONTAP storage operating system.