The firm upgraded the data storage company to "overweight" from "neutral," raising the target price to $52 from $38. Analysts Andrew J. Nowinski and Ryan R. Bergan said they believe demand for the company's FAS products is strong and will continue to gain momentum in the near-term. "Moreover, we believe NetApp's OEM revenue, which has weighed on growth over the last 4 quarters, is now set to return to growth," the analysts wrote.
Nowinski and Bergan also wrote that NetApp has a chance to "significantly outperform" competitor EMC (EMC) in the data storage market in 2014 and after.
The analysts also raised their earning predictions. They now expect earnings from NetApp of $2.72 a share in 2014, up from $2.67 a share. For 2015, the analysts expect earnings of $3.13 a share, up from the previous estimate of $2.94.
TheStreet Ratings team rates NETAPP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about its recommendation:
"We rate NETAPP INC (NTAP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."