UPDATE: Goldman Sachs Raises PT on NetApp Following 1QFY2014 Revenues Report

In a report published Thursday, Goldman Sachs analyst Bill Shope reiterated a Neutral rating on NetApp NTAP, and raised the price target from $39.00 to $40.00.

In the report, Goldman Sachs noted, “NetApp reported 1QFY2014 revenues that came in slightly below expectations but EPS that came in better than expected, while giving relatively conservative guidance for 2QFY2014. The company reported revenues of $1.516 billion, slightly below our estimate and consensus of $1.53 billion. Gross margins of 61.3% were higher than our estimate of 60.9%. Operating margins of 14.9% were above our 13.9% forecast. Non-GAAP EPS of $0.53 was above our estimate of $0.51 and consensus of $0.49, despite a higher share count, while a lower tax rate benefitted EPS by $0.01 versus our model.”

NetApp closed on Wednesday at $42.33.