UPDATE: Stifel Nicolaus Raises PT on NetApp on Multiple Positive Factors

In a report published Tuesday, Stifel Nicolaus analyst Aaron Rakers reiterated a Buy rating on NetApp NTAP, and raised the price target from $42.00 to $47.00.

In the report, Stifel Nicolaus noted, “We maintain our Buy and increase our target price to $47 (was $42) - ~14x C2014 P/E (~10x ex-cash); ~7x EV/EBITDA. While we believe investors could now look toward EMC as a more compelling product cycle story into 2H2013 vs. NetApp, we believe positive model stability (+17% operating/EBIT margin) coupled with a meaningful capital allocation strategy can continue to move shares higher. We expect NetApp to meet F1Q14 expectations (reporting on 8/14; AMC). We continue to highlight NetApp's positive capital allocation strategy ($1B share repo by end of Sept; another $2B by Jun 14 plus a current ~1.5% div. yield) and easy branded revenue comps over the coming quarters. We maintain an above-consensus C2014 non-GAAP EPS estimate of $3.27/sh. (street: $2.97/sh.), reminding investors of NetApp's mid-teens operational non-GAAP EPS growth target for F2014 (ex-share repo). Shares of NetApp are +25% YTD vs. EMC at +4% and S&P 500 at +20%.”

NetApp closed on Monday at $41.68.