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UPDATE: Morgan Stanley Downgrades NetApp

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Morgan Stanley on Monday downgraded shares of NetApp (NASDAQ: NTAP) from Equal-weight to Underweight and lowered the price target from $47 to $31.

Analyst Katy Hubert believes storage spent will “remain under pressure in 2014, consistent with the 30bps decline last year.”

Cost cutting will not be enough to expand margin levels and as a result, Hubert reduced “FY2015 operating margin estimates to 16.3% from 17.9%, vs consensus estimate of 18.1%.”

The analyst sees “more room for cash return or M&A that evolves the product portfolio” as a bullish scenario, “given the company's $12 per share of net cash.”

Shares of NetApp are down 4.6 percent to $36.06 on the back of the downgrade.

Latest Ratings for NTAP

DateFirmActionFromTo
Feb 2017William BlairUpgradesUnderperformMarket Perform
Feb 2017PiperJaffrayUpgradesNeutralOverweight
Jan 2017Goldman SachsUpgradesNeutralBuy

View More Analyst Ratings for NTAP
View the Latest Analyst Ratings

Posted-In: Katy Hubert Morgan StanleyAnalyst Color Analyst Ratings

 

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