Story updated at 9:50 a.m. to reflect market activity.
Shares of NetApp gained 0.6% to $42.75 in morning trading.
The analyst firm also raised its EPS estimates for the data storage devices company through 2016. According to Pacific Crest estimates, NetApp will report earnings of $3.10 a share in 2015, up from the firm's previous estimate of $3.08 a share. For 2016, Pacific Crest estimates the company will report earnings of $3.35 a share, up from $3.31 a share.
"Reseller feedback suggests a seasonal recovery in Federal and Enterprise demand in August and September could be the most promising in years for NetApp," Pacific Crest analyst Brent Bracelin wrote.
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 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 impressive record of earnings per share growth, expanding profit margins, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."