For the January quarter,
Citi’s Jim Suva, who has a Neutral rating on the stock, laid out five positives from
- “EPS beat by $0.06 due to cost saving effort which drove operating margin outperformance of 160bps above consensus.”
- “EPS guidance for 3Q, beat consensus by $0.10 and sales guidance bracket consensus estimates.”
- “All flash array business saw triple digit growth y/y with an annualized run rate over $1 billion, with All flash FAS remaining a strong selling point with customers looking to improve existing infrastructure and processes.”
- “NetApp remains on track to achieve both long term growth and the target operating range (15 percent to 17 percent in FY17 and 18 percent in FY18).”
- “Continue to take share from competitors.”
Suva also raised his target price to $39 from $33 on improving margins and better opex management. The revised target implies a potential return of 12.3 percent over November 16 close.
“We continue to be positive on management’s ability to decrease OpEx and improve margins,” Suva wrote in a note.
Another Voice From The Street
Separately, analysts at Drexel Hamilton
At last check, shares of NetApp had climbed 8.79 percent on the day to $37.78.
Image Credit: By LPS.1 - Own work, CC0,
|Nov 2016||Maxim Group||Downgrades||Buy||Hold|
|Nov 2016||Drexel Hamilton||Upgrades||Hold||Buy|
|Nov 2016||OTR Global||Downgrades||Mixed||Negative|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.