BofA update shows where active managers are putting money
Investing.com - UBS raised its price target on NetApp (NASDAQ:NTAP) to $114.00 from $108.00 on Thursday, while maintaining a Neutral rating on the data storage company’s stock. The new target aligns closely with NetApp’s current trading price of $113.85, with InvestingPro analysis suggesting the stock is fairly valued.
NetApp reported revenue of $1.56 billion, matching UBS estimates. When adjusted for the sale of the ’Spot’ asset last year, the company’s year-over-year revenue growth was approximately 3% against what UBS described as the toughest comparison from last year. The company maintains strong fundamentals with a 70.19% gross profit margin and has achieved 4.85% revenue growth over the last twelve months. InvestingPro subscribers can access 10+ additional key metrics and insights about NetApp’s financial performance.
The company’s all-flash C-Series continues to drive market share gains with Annual Recurring Revenue (ARR) reaching $3.6 billion, up approximately 6% year-over-year, which offset a decline in traditional drives.
UBS identified pockets of top-line weakness in the U.S. government and EMEA (Europe, Middle East, and Africa) sectors. While not specifically quantified, UBS estimates NetApp’s Federal and State/Local/Education business declined substantially, possibly more than 30% in the quarter.
Despite these challenges, NetApp reaffirmed its fiscal year 2026 guidance as expected, with UBS noting that July/October should represent the trough for ’Product’ margin and demand, though the 54% product gross margin missed UBS’s 55.9% estimate. According to InvestingPro data, analysts forecast EPS of $7.82 for FY2026, and the company maintains a healthy financial position with an overall Financial Health Score of "GOOD."
In other recent news, NetApp Inc. reported its financial results for the first quarter of fiscal year 2026, exceeding market expectations. The company achieved an earnings per share (EPS) of $1.55, which was slightly above the forecasted $1.54. Additionally, NetApp reported revenue of $1.56 billion, surpassing the anticipated $1.54 billion. These results highlight the company’s strong performance in the recent quarter. The earnings announcement has garnered positive attention from investors. While specific stock movements are not detailed here, the results have been well-received. These developments are part of the latest updates on NetApp’s financial performance.
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