William Blair analyst Jason Ader has maintained their neutral stance on NTAP stock, giving a Hold rating today.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Jason Ader has given his Hold rating due to a combination of factors influencing NetApp’s performance. The company reported strong second-quarter results, surpassing revenue expectations and demonstrating impressive growth in its all-flash, cloud, and AI segments. Despite these positive outcomes, the third-quarter revenue guidance fell short of expectations, which may have tempered enthusiasm for a more bullish rating.
Moreover, while profitability metrics such as gross and operating margins showed significant improvement, the reaffirmation of full-year revenue guidance without upward revision suggests a cautious outlook. The company’s success in certain areas, like its Keystone storage-as-a-service offering, highlights potential, but the mixed signals in guidance and sector-specific challenges contribute to the Hold rating. This balanced view reflects both the strengths and uncertainties surrounding NetApp’s future performance.
Ader covers the Technology sector, focusing on stocks such as Varonis Systems, NetApp, and JFrog. According to TipRanks, Ader has an average return of 2.6% and a 45.78% success rate on recommended stocks.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $129.00 price target.