UPDATE: J.P. Morgan Raises PT on NetApp Following Good Results, Positive Outlook

In a report published Thursday, J.P. Morgan analyst Mark Moskowitz reiterated an Overweight rating on NetApp NTAP, and raised the price target from $45.00 to $46.00.

In the report, J.P. Morgan noted, “While shares of OW-rated NetApp were under pressure in after-hours trading Wednesday, we expect any weakness to be temporal. In our view, the Jul-Q results were good enough, and the Oct-Q earnings outlook topped consensus estimates. In our view, NetApp's branded revenue base growing 9% YoY sets the stage for a potential return to double-digit revenue growth. NetApp expects branded to grow 9% again in the Oct-Q, signaling continued market share gains. We recommend that investors take advantage of any near–term pullback in NetApp's stock. Improving revenue growth trends, OpEx controls, and stock buyback activity could re-rate the P/E multiple higher in coming months, in our view. We are lifting Dec-14 price target to $46, up from $45.”

NetApp closed on Wednesday at $42.33.