UPDATE: Citigroup Initiates NetApp at Neutral on Limited Margin Potential

Citigroup initiated coverage on NetApp

with a Neutral rating and a $34 price target. Citigroup said, "We view the shares to be fairly valued with balanced risk/reward. Our Neutral rating compares with consensus rating distribution of 39% Buy, 58% Hold and 3% Sell. While positive secular trends are likely to drive continued demand for NTAP's storage products and services, we believe macro factors in Europe and recent signs of weakness in Asia as well as high unemployment rates are likely to limit overall IT and storage spending." NetApp closed at $30.52 on Monday.