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Oppenheimer Maintains a Hold Rating on NetApp (NTAP)


In a report released yesterday, George Iwanyc from Oppenheimer maintained a Hold rating on NetApp (NASDAQ: NTAP). The company’s shares closed yesterday at $82.47, close to its 52-week high of $83.60.

Iwanyc wrote:

“NetApp reported strong FY1Q19 results ahead of guidance/consensus (helped by ELAs, FX, NAND pricing) and provided in-line FY2Q19 guidance. Strategic product growth was healthy (+23% YoY to $612M, includes ELAs), ~$2.2B AFA annualized run-rate was up 50% YoY (on a ~14% AFA installed base), HCI interest is growing, and mature products were surprisingly strong (+14.8% YoY to $263M). Overall, NetApp’s executing smoothly with its product initiatives, while positioning itself as a key partner for hybrid cloud needs as it builds out its Data Fabric strategy, CDS, and hyperscale partner cloud efforts. We’re positive on NetApp’s growth strategy and developing TAM (HCI, CDS), though we believe this is already reflected in investor expectations. Maintain Perform, keeping watch on NetApp’s cloud initiatives.”

According to TipRanks.com, Iwanyc is a 3-star analyst with an average return of 14.1% and a 83.3% success rate. Iwanyc covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Ceragon Networks, and Juniper Networks.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for NetApp with a $83.89 average price target, representing a 1.7% upside. In a report issued on August 9, RBC Capital also reiterated a Hold rating on the stock with a $85 price target.

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Based on NetApp’s latest earnings release for the quarter ending April 30, the company reported a quarterly revenue of $1.64 billion and net profit of $271 million. In comparison, last year the company earned revenue of $1.33 billion and had a net profit of $136 million.

Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. Last month, George Kurian, the CEO of NTAP sold 6,000 shares for a total of $468,960.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

NetApp, Inc. engages in the design, manufacture, marketing, and technical support of storage and data management solutions. It offers cloud data services, data storage software, data backup and recovery, all-flash storage, converged systems, data infrastructure management, ONTAP data security, and hybrid flash storage.