BofA Securities raises NetApp stock price target to $125 on margin strength

Published 25/08/2025, 11:08
BofA Securities raises NetApp stock price target to $125 on margin strength

Investing.com - BofA Securities raised its price target on NetApp (NASDAQ:NTAP) to $125.00 from $121.00 on Monday, while maintaining a Neutral rating on the stock ahead of the company’s fiscal first-quarter results. The technology hardware company, currently valued at $22.1 billion, has demonstrated solid financial health with a 70% gross margin and maintains a strong market position in data storage solutions.InvestingPro analysis shows NetApp trading near its Fair Value, with 8 additional key insights available to subscribers.

The firm expects NetApp to report fiscal Q1 2026 results in the upper half of the guided range, projecting revenue of $1.55 billion and earnings per share of $1.54, compared to Street estimates of $1.54 billion and $1.54, respectively. The company’s PEG ratio of 0.83 suggests attractive valuation relative to its growth prospects.

For the full fiscal year, BofA models revenue of $6.79 billion and EPS of $7.82, above Street expectations of $6.76 billion and $7.72, and higher than the midpoint of NetApp’s guidance of $6.75 billion and $7.75.

BofA anticipates NetApp will maintain its full-year guidance unchanged, though the firm notes that first-quarter beats and stronger second-quarter guidance would make the full-year targets more achievable.

The firm reiterated its Neutral rating on NetApp stock, noting that headwinds from broader macroeconomic uncertainty are balanced by "somewhat stronger overall margins" for the company. The stock offers a steady 1.88% dividend yield, having maintained dividend payments for 13 consecutive years, while operating with moderate debt levels.Discover more detailed insights and metrics with a InvestingPro subscription, including exclusive access to the comprehensive Pro Research Report.

In other recent news, NetApp reported its fourth-quarter earnings for fiscal year 2025, surpassing analyst expectations with earnings per share (EPS) of $1.93, compared to the forecast of $1.89. The company achieved a revenue of $1.73 billion, slightly above the anticipated $1.72 billion. UBS adjusted its price target for NetApp shares to $108 from $115, maintaining a Neutral rating, following the company’s financial performance. The UBS revision came after noting a 14% year-over-year growth in NetApp’s all-flash array annual recurring revenue. Meanwhile, JPMorgan revised its price target to $115 from $120, keeping an Overweight rating due to record revenues and a robust 22% growth in the Public Cloud segment. Morgan Stanley assumed coverage of NetApp with an Equalweight rating and a price target of $115. Furthermore, NetApp announced the appointment of Syam Nair as the new Chief Product Officer, effective July 7, 2025. These developments indicate a mix of strong past performance and cautious future outlooks for the company.

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