UPDATE: Pacific Crest Securities Reiterates On NetApp As Improving Margins Overshadow OEM Decline

In a report published Thursday, Pacific Crest Securities analyst Brent Bracelin reiterated an Outperform rating on

, but lowered the price target from $47.00 to $40.00. In the report, Pacific Crest Securities noted, “Another revenue shortfall was offset by better margins. Declining OEM revenue and high competitive risks suggest F2015 should remain mixed, but we believe that is baked into the valuation at 4.8x EV/EBITDA. Despite a favorable risk/reward, wait for a strategy update in June before adding to positions.” NetApp closed on Wednesday at $37.37.