Summit Analyst Says NetApp Is A 'Great Acquisition Target'

In a note released Tuesday morning, Summit Research analyst Srini Nandury reiterated a Hold rating and $34 price target on NetApp NTAP amid beliefs that the company is well positioned as an acquisition target.

Nandury commented, "We believe NetApp makes a good acquisition candidate given its unified software stack (ONTAP) for the majority of its revenue and Engenio OS for high-performance all-flash and hybrid arrays."

Additionally, Nandury noted that the company's shares are currently trading at 10x - 11x on 2015 EPS of $3.43 compared to a historic range of 13x - 27x.

Nandury says he remains on the sidelines until the company proves it can continue to execute on its product plans, stabilize the problems with its OEM business and return to growth.