NEW YORK (TheStreet) -- Shares of NetApp Inc (NTAP) were gaining, higher by 1.65% to $33.65 in early market trading Wednesday, after analysts at RBC Capital Markets upgraded the provider of storage and data management software this morning.
The firm raised its rating on NetApp to "outperform" from "sector perform" while raising its price target to $38 from $35.
RBC Capital analyst believes that the recent change in CEO could be a catalyst for the stock.
The firm thinks the data management company's CEO change could unlock shareholder value, as the company's board will likely explore all possible options to drive up the stock valuation.
On June 1, NetApp announced the departure of chairman and CEO Tom Georgens who had been with the company since 2011.The company board elected George Kurian as its new CEO.
Sunnyvale, Calif.-based NetApp is a provider of storage and data management software, systems and services.
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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."