UPDATE: Wedbush Securities Reiterates Neutral Rating, Raises PT on NetApp

In a report published Monday, Wedbush Securities reiterated its Neutral rating on NetApp (NASDAQ: NTAP), and raised its price target from $28.00 to $33.00.Wedbush noted, “We remain confident that the company will continue to benefit from growth trends in the wider storage market. However, we think these positive trends are tempered by concerns about margins, the competitive landscape, spending weakness in Europe and some uncertainty in public sector spending. Generally, we think growth is tepid in the overall storage market, with companies purchasing only what is required NT – however, we simply have not seen a severe drop in spending. Thus we believe the company's forecast last quarter may have been overly conservative, according to our checks, and it is possible that the company could deliver results better than the midpoint of guidance, in line with our estimates,which are slightly better than consensus. We expect a cautious guide, which should deliver modest q/q and y/y improvement. Bottom line, we see less deterioration in the environment, but think shares are appropriately valued at current levels and would become more constructive on a pullback, more evidence of sustained growth, and signs that the competitive environment is moderating.”NetApp closed on Friday at $32.58.