20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
NetApp Inc. (NASDAQ:NTAP) impressed investors with its third quarter earnings, with nearly every reported metric exceeding Street expectations.
The Analyst
BMO Capital Markets' Tim Long upgraded NetApp's stock from Market Perform to Outperform with a price target boosted from $43 to $62.
The Thesis
NetApp's earnings report was "impressive" and highlighted by better-than-expected revenue, gross margin and product margin, among other metrics, Long said in a Thursday note. (See Long's track record here.)
Perhaps more important, the report emphasizes that NetApp's execution and performance has "improved considerably" as of late and should leave investors with "more confidence in the outlook and sustainability" of the recent momentum, Long said.
NetApp is also "executing well" on various strategic initiatives to improve the business and also benefiting from the All-Flash market business, which is on track for a $1.7 billion revenue run rate, according to BMO. And NetApp's legacy business has shown itself to be "much less of a headwind," the analyst said.
"While we are a bit late to the story, we still see plenty of runway and believe the setup is favorable for continued outperformance over the next year," Long said. "Going forward, we see continued flash growth, stabilization in the legacy businesses, ongoing gross margin improvements and meaningful opex leverage, with a very attractive valuation."
Price Action
Shares of NetApp were trading higher by more than 15 percent Thursday morning and hit a new 52-week high of $53.89.
5 Biggest Price Target Changes For Thursday
Benzinga's Top Upgrades, Downgrades For November 16, 2017
Photo courtesy of Wikipedia.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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