NetApp Climbs After Analyst Upgrades Stock
SAN FRANCISCO (AP) ¿ Shares of NetApp Inc. rose Monday after an RBC Capital Markets analyst upgraded the data storage company's stock to "Outperform," saying checks indicate its revenue in the current quarter is higher than expected.
NetApp shares gained 98 cents, or 3.8 percent, to $26.87 in afternoon trading.
In a client note, RBC analyst Amit Daryanani raised his rating for the stock from "Sector Perform" and increased his price target to $33 from $26.
Daryanani said that better-than-expected revenue should mean that the company can beat estimates for the October quarter, which is its fiscal 2010 second quarter, and give guidance for a better-than-expected fiscal third quarter, too.Analysts polled by Thomson Reuters expect $861.8 million in revenue for the current quarter, on average, and $893.7 million for the next. Daryanani also said that the company may benefit from the impact of foreign exchange. "We view NTAP as an attractive way for mid/large cap investors to play the anticipated IT spending recovery in (the second half of 2009)," he said. The analyst added that he expects the company to "exude a positive business tone" during its analyst day in New York on Oct. 8.
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