NetApp Hold Rating: Balancing Strong Performance with Growth Uncertainties and Market Conditions

NetApp (NTAP – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Mehdi Hosseini from Susquehanna reiterated a Hold rating on the stock and has a $110.00 price target.

Mehdi Hosseini has given his Hold rating due to a combination of factors impacting NetApp’s current and future performance. The company’s recent quarterly revenue was in line with expectations, supported by strong performance in all-flash storage and cloud services. However, the anticipated slowdown in year-over-year product revenue growth into FY26, with a potential bottoming not expected until FY27, raises concerns about sustained growth.
Additionally, while NetApp stands to gain from increased AI-related activities, uncertainties in core enterprise spending and public projects in the U.S. contribute to a cautious outlook. The company’s guidance for FY26, although aligning with some expectations, fell short of buy-side projections, further justifying the Hold rating. Overall, while there are positive aspects to NetApp’s performance, the combination of growth uncertainties and market conditions suggests a neutral stance is appropriate.

According to TipRanks, Hosseini is a 5-star analyst with an average return of 11.0% and a 55.02% success rate. Hosseini covers the Technology sector, focusing on stocks such as Teradyne, Applied Materials, and NetApp.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $106.00 price target.