The firm said that the Sunnyvale, CA-based data storage services provider was "upbeat and proud of recent accomplishments" at an investor meeting earlier this week.
NetApp said at the conference that it has reached number two in market share in the all-flash array market, as well as the fact that it is the fastest growing storage area network (SAN) provider, Jefferies noted.
"The Data Fabric strategy seems to be progressing well," the firm added. NetApp plans to develop some applications for its data fabric, a distributed memory-based data management platform, but also wants to attract other companies to build on its platform.
Jefferies noted that NetApp plans to "dramatically increase the tempo of new services it offers going forward."
But Jefferies said that "at this point, we don't find the valuation particularly compelling and are inclined to look for another entry point."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: NTAP