NetApp stock price target raised to $115 from $110 at Evercore ISI

Investing.com - Evercore ISI has raised its price target on NetApp (NASDAQ:NTAP) to $115.00 from $110.00 while maintaining an "In Line" rating following the company’s annual INSIGHT user conference in Las Vegas. The stock, currently trading at $120.55 with a market capitalization of $24.06 billion, has shown remarkable momentum with a 48% gain over the past six months. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The firm highlighted NetApp’s introduction of the AFX series, a disaggregated storage platform built for AI workloads that allows customers to independently scale performance and capacity. This new platform is NVIDIA DGX SuperPod certified, positioning NetApp in the growing AI infrastructure market. As a prominent player in the Technology Hardware, Storage & Peripherals industry, NetApp maintains strong financial health with a 70% gross profit margin and healthy cash flows.

NetApp also unveiled its AI Data Engine (AIDE), designed to transform raw and unstructured data into AI-ready data through real-time metadata management, vectorization, and semantic tagging without complex ETL pipelines. The company announced enhancements to its ONTAP system that expand its cloud-native footprint across the top three public clouds.

Security features were another focus at the conference, with NetApp announcing its Ransomware Resilience service, an integrated security solution built into its data platform that provides real-time anomaly detection to address emerging AI-related cybersecurity threats.

During a customer panel at the event, technology leaders emphasized the importance of having vendors that offer comprehensive storage approaches spanning multi-cloud and hybrid-cloud environments, as well as solutions for both high and low-performance workloads. For deeper insights into NetApp’s AI initiatives and financial outlook, InvestingPro subscribers can access comprehensive analysis including 12 additional ProTips and detailed valuation metrics in our Pro Research Report.

In other recent news, NetApp reported revenue of $1.56 billion, aligning with UBS’s estimates. UBS adjusted NetApp’s year-over-year revenue growth to approximately 3% after accounting for the sale of the ’Spot’ asset last year. In other developments, NetApp unveiled new cyber resilience capabilities, including industry-first data breach detection for enterprise storage and isolated recovery environments. The company also introduced new products designed for AI workloads, such as the NetApp AFX and the NetApp AI Data Engine. NetApp has expanded its collaboration with Google Cloud, offering new block storage capabilities to enhance unified storage for enterprise workloads. Additionally, NetApp and Cisco have collaborated to enhance converged infrastructure offerings, integrating NetApp’s AFX architecture with Cisco Nexus switches. UBS raised its price target for NetApp to $114, maintaining a Neutral rating on the stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.