Oppenheimer Has Perform on NetApp

Oppenheimer & Co. is out with a research report on NetApp, Inc.

and it has a Perform rating on shares after it reported earnings. In a note to clients, Oppenheimer & Co. writes, "NetApp delivered disappointing FY2Q12 results with revenues and guidance coming in below consensus estimates. The miss was attributed to underperformance in nine of the company's 46 major accounts. We believe this underperformance was driven by multiple factors including poor execution and internal forecasting, rising competition (highlighted as an issue in one account), and the mixed macro environment. The flooding in Thailand could further weigh on revenues and margins, and we believe the effects of increased competition from Dell and EMC are likely to remain in place for some time. Overall, we expect NetApp to continue to gain share, but the gains are likely to come at a cost (lower margins). Given these headwinds, we remain on the sidelines." Shares of NTAP are down $3.34 in pre-market trading to $37.40, a loss of 8.2%.