NetApp price target lowered to $88 from $89 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on NetApp (NTAP) to $88 from $89 and keeps an Underweight rating on the shares. While stating that NetApp made progress on “a handful of strategic priorities” this quarter, the firm still believes significantly higher memory costs and limited pre-purchase initiatives create growing risk of Product gross margin compression and demand destruction in FY27, the analyst tells investors.