Will This Downgrade Hurt NetApp (NTAP) Stock Today?

NEW YORK (TheStreet) -- Shares of NetApp Inc.  (NTAP) were downgraded today to "neutral" from "buy" at UBS (UBS).

UBS lowered its price target to $40 from $50.

"The outlook for storage spending continues to look mediocre as users pause and consider their alternatives. Although there still may be a storage upgrade cycle coming, we don't see it in our recent survey work and NetApp faces rising competition from start-ups as well as the cloud. We no longer assess the stock a premium P/E valuation." said UBS.

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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 a number of 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, 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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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