William Blair analyst Jason Ader has maintained their neutral stance on NTAP stock, giving a Hold rating today.
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Jason Ader has given his Hold rating due to a combination of factors, primarily focusing on NetApp’s mixed performance in its recent fiscal quarter and the reaffirmation of its full-year guidance. The company’s first-quarter results showed a slight revenue increase when adjusted for currency effects, but its earnings per share fell short of expectations. This was partly due to a weaker product gross margin, which was impacted by an unfavorable product mix.
Despite these challenges, NetApp demonstrated strength in certain areas, such as the Americas enterprise demand and a shift towards higher-margin services, which helped improve its operating margin. Furthermore, while the second-quarter guidance exceeded expectations slightly, the full-year outlook remains conservative, with revenue growth projections below consensus. These mixed signals contribute to the Hold rating, suggesting that while there are positive aspects to NetApp’s performance, uncertainties remain that warrant a cautious approach.
Ader covers the Technology sector, focusing on stocks such as Nutanix, NetApp, and CommVault Systems. According to TipRanks, Ader has an average return of 4.9% and a 52.91% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $117.00 price target.