Cautious Hold on NetApp Amid Macroeconomic Uncertainties and Competitive Pressures

Analyst Meta Marshall from Morgan Stanley maintained a Hold rating on NetApp (NTAP – Research Report) and keeping the price target at $106.00.

Meta Marshall has given his Hold rating due to a combination of factors impacting NetApp’s performance. The company’s recent quarterly results were generally in line with expectations, but there are ongoing concerns about macroeconomic uncertainties, particularly in Europe and the public sector, which have led to cautious spending behaviors. Despite some positive performance in the flash and public cloud segments, these areas have not fully compensated for the weaknesses observed elsewhere.
While the company’s valuation appears more attractive at approximately 12x FY26e P/E, Marshall remains cautious. The competitive landscape and muted storage checks suggest that significant outperformance is not yet evident. Additionally, product gross margins have been under pressure, although cloud margins have shown improvement. Marshall prefers to wait for clearer signs of improvement in these areas before altering the current Hold stance.