UPDATE: FBN Securities Downgrades NetApp; Lowers PT

According to a research report published earlier today, FBN Securities has downgraded NetApp

from Outperform to Sector Perform, and has lowered PT from $50 to$45. In the report, FBN Securities commented, “Channel checks are indicating weaker-than-expected sales of NTAP primarily due to increased competition, and we think that EMC will ratchet up the competitive heat after EMC World on May 21. We are somewhat surprised by the weakness in NTAP's FQ4. Historically, this has been NTAP's strongest quarter. Shorter-term investors who do not wish to own shares of NTAP in front of its seasonally weakest quarter (FQ1), when seasonal weakness in Europe (where the economy is obviously weak) often plays a role, may wish to lighten their positions.” NetApp closed yesterday at $42.02.