Wells Fargo upgraded its rating on NetApp to Equal Weight from Underweight and raised its price target to $190 from $180, citing the company’s consistent execution and expanding presence in all-flash storage and cloud data services.
The move follows NetApp’s fiscal first-quarter results, which exceeded expectations with revenue of $2.03 billion, up 29.9% year-over-year and surpassing Wall Street’s forecast of $1.837 billion. Earnings per share reached $2.58, beating the projected $2.12. The company’s gross margins stood at 70.6%, while EBIT margins were 31.9%.
Wells Fargo highlighted NetApp’s momentum in hybrid cloud products, public cloud services, and its software-first strategy as key drivers of the upgrade. The firm also noted strong demand for the company’s all-flash array solutions, which have contributed to a 4% sequential revenue increase. NetApp’s market capitalization remains at $35.45 billion, with shares trading at $180.77 at the time of the report.
Despite the positive outlook, NetApp’s stock declined in after-hours trading, reflecting investor concerns over future growth prospects. Rival firms Evercore ISI and Goldman Sachs maintain higher price targets of $210, with Goldman Sachs maintaining a Buy rating and Evercore ISI assigning an In Line rating. NetApp’s Piotroski Score of 9 indicates robust financial health.
Analysts emphasized the company’s balanced risk-reward profile, balancing execution strength against broader market uncertainties. The upgrade underscores growing confidence in NetApp’s ability to sustain growth in high-margin segments amid shifting enterprise IT spending trends.
