UPDATE: Stifel Nicolaus Cuts PT to $42 on NetApp on Weak Guidance

Stifel Nicolaus lowers its price target on NetApp

from $52 to $42 as it reiterates its Buy rating on Stifel Nicolaus comments, "While NetApp reported top/bottom-line F4Q12 upside, a weak F1Q13 guide at $1.4-$1.5B/$0.34-$0.39 (vs. our prior $1.6B/$0.62) once again raises significant questions on NetApp's competitive positioning and therefore results in significant share pressure (shares down over 16% post-close)). NetApp's guide reflects ~60%-61% GM% (positive) and non-GAAP operating/EBIT margin. We adjust our F2013 and F2014 estimates from $6.758B/$2.79 and $7.501B/$3.42 to $6.390B/$2.05 and $7.036B/$2.68, respectively. With our new estimates, shares trade at sub-5x EV/EBITDA on our forward estimates; 11x P/E on our C2013 EPS." NTAP closed at $32.86 on Wednesday.