NetApp (NTAP) PT Raised to $93 at Stifel

Stifel analyst Matthew Sheerin raised the price target on NetApp (NASDAQ: NTAP) to $93.00 (from $90.00) while maintaining a Hold rating following earnings.

The analyst commented, "We are tweaking our forward estimates higher following strong F2Q results, driven by good growth in both product (+9% y/y) and public-cloud revenue (+85% y/y). NTAP also raised its FY22 public-cloud ARR to $525mn at midpoint, up from $475mn previously, a sign that its relationships with the three major hyperscalers are gaining traction. Forward revenue guidance was just above Consensus, while EPS guide of $1.26 was 3 cents below Street due to near-term gross margin pressure related to higher component and logistics costs. The storage solution provider expects margins to rebound as ASP increases stick. We are modestly raising estimates and increasing our price target to $93 from $90, or ~17x our FY23 EPS estimate of $5.47, reflecting some multiple expansion due to NTAP's growing cloud business. We maintain our Hold rating on the stock."

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