Analyst Erik Woodring from Morgan Stanley maintained a Hold rating on NetApp and keeping the price target at $117.00.
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Erik Woodring has given his Hold rating due to a combination of factors including NetApp’s recent performance and future uncertainties. The company exceeded expectations in its F2Q26 earnings with strong revenue growth and record margins, particularly in all-flash and Public Cloud segments. Despite this positive performance, there is limited visibility beyond April 2026, and concerns about rising memory costs and potential supply chain issues in FY27 remain.
While NetApp’s management has maintained its FY26 revenue guidance, they have provided little clarity on the FY27 outlook. The potential for increased memory prices and the risk of supply shortages could impact profitability. Although the company has historically managed to pass on higher input costs, the current environment presents additional challenges. As a result, Erik Woodring maintains a cautious stance, reflected in the Hold rating, due to these uncertainties and risks.
Woodring covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and HP. According to TipRanks, Woodring has an average return of 8.8% and a 62.22% success rate on recommended stocks.