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Based in San Jose, California, NetApp, Inc. (NTAP) is a data management and cloud services player with a market cap of $25.21 billion. As a pioneer in data storage and management solutions, NetApp provides comprehensive data storage, cloud computing, and data protection services. The company operates globally, serving many customers, from small businesses to large enterprises and government organizations.
Shares of NetApp have outperformed the broader market considerably over the past year. NTAP has gained 59.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.6%. In 2024 alone, NTAP stock is up 38.9%, surpassing SPX’s 12% rise on a YTD basis.
Narrowing the focus, NTAP has significantly outperformed the Technology Select Sector SPDR Fund (XLK). The stock has comfortably outperformed the exchange-traded fund’s 6.8% YTD returns.
NTAP reported Q4 earnings on May 30. Revenue of $1.67 billion exceeded analysts' forecast of $1.66 billion. The company expects revenue between $1.46 billion and $1.61 billion for the fiscal first quarter. NetApp expects full-year earnings between $6.80 and $7 per share, with revenue ranging from $6.45 billion to $6.65 billion. Following the release of these results, the stock gained 3.4% in the following trading session.
For the current fiscal year, ending in April 2025, analysts expect NTAP’s EPS to grow 8.1% year over year to $5.47 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 18 analysts covering NTAP stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, 12 “Holds,” and one “Moderate Sell.”
This configuration is more bullish than it was three months ago when the overall rating was “Hold.”
On Jul. 11, Amit Daryanani from Evercore ISI maintained a “Hold” rating on NetApp, with a price target of $120.
The mean price target of $124.73 represents a 1.8% premium to NTAP’s current price levels. The Street-high price target of $155 suggests an upside potential of 26.5%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
