UPDATE: FBN Securities Upgrades NetApp to Outperform, Retains PT of $45

FBN Securities raises its rating on NettApp, Inc. NTAP to Outperform from Perform as the company's indirect channel business remains robust despite declining direct sales. FBN comments, “While it is true that NTAP's direct sales have lost share to the competition (EMC and HDS) over the past two quarters, its indirect channel business remains robust. NTAP's indirect business has grown at a 4-yr. CAGR of 23% (and 34% Y/Y in the latest quarter), while its direct business has grown at a 4-yr. CAGR of 4% (and -14% Y/Y in the latest quarter). Our key point is that with direct now accounting for only 20% of revenue (vs. 28% the year before), NTAP's overall business will be more and more determined by its indirect business, for which we are still projecting a robust 18% growth in F2013/Apr.” NTAP closed at $34.74 per share on Friday.