Will This Initiation Of Coverage Hurt NetApp (NTAP) Today?

NEW YORK (TheStreet) -- NetApp (NTAP) had coverage initiated on its shares with a "hold" rating at Deutsche Bank  (DB) on Thursday.

The firm set a price target of $36 on the company's shares.

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NetApp is up 0.1% to $37.70 in early market trading on Thursday.

Deutsche Bank points to sector changes in the IT field as the reason for the rating and blame the emergence of cloud computing competitors as a reason for stagnating sales.

"NetApp has historically seen high growth, but sales have stalled in the past two years... We also believe NetApp's medium-sized businesses are exploring putting more workloads in the Cloud. Offsetting weaker sales, is the company's innovative Clustered Data ONTAP operating systems, which we believe is an attractive platform for cloud providers." Deutsche Bank said.


Separately, TheStreet Ratings team rates NETAPP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETAPP INC (NTAP) a BUY. This is driven by some important positives, 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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