NetApp’s Strong Market Position and Growth Potential Earns Buy Rating Amidst Conservative FY26 Outlook

Analyst Samik Chatterjee of J.P. Morgan maintained a Buy rating on NetApp (NTAP – Research Report), reducing the price target to $115.00.

Samik Chatterjee has given his Buy rating due to a combination of factors that highlight NetApp’s strong market position and potential for growth. The company has demonstrated impressive financial performance with record revenues and operating profits, largely driven by significant market share gains and robust growth in the Public Cloud sector. Despite a cautious revenue growth outlook for FY26, which is slightly below consensus expectations, the guidance aligns with previous growth patterns and reflects a conservative approach amidst macroeconomic uncertainties.
Chatterjee also points out that NetApp’s refreshed product portfolio, including the launch of new series products, positions it well to gain further market share from competitors. The company’s strategy to leverage AI use cases and its focus on datacenter and storage infrastructure improvements are expected to drive resilient revenue growth. Additionally, the potential for accelerated earnings growth through operating leverage and improved gross margins further supports the Buy rating, with a modestly adjusted price target reflecting these expectations.

According to TipRanks, Chatterjee is a 5-star analyst with an average return of 10.8% and a 58.70% success rate. Chatterjee covers the Technology sector, focusing on stocks such as Apple, Super Micro Computer, and Coherent Corp.

In another report released today, Barclays also maintained a Buy rating on the stock with a $117.00 price target.