Analyst Wamsi Mohan of Bank of America Securities reiterated a Hold rating on NetApp, boosting the price target to $129.00.
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
Wamsi Mohan has given his Hold rating due to a combination of factors influencing NetApp’s performance. The company delivered strong quarterly results, surpassing expectations in revenue, gross margin, operating margin, and earnings per share, with notable growth in all-flash offerings and public cloud services. However, these positive aspects are tempered by broader macroeconomic uncertainties that could impact future performance.
Despite the robust demand for AI solutions and cloud storage services, potential challenges such as sustained high NAND prices could necessitate price increases, potentially affecting demand. Additionally, while NetApp’s product margins are expected to remain stable in the near term, there is an anticipation of a slight decline in the following fiscal year. These mixed factors contribute to the Hold rating, as the positive momentum is balanced by potential risks and uncertainties.