On Wednesday, UBS downgraded shares of NetApp NTAP from Buy to Neutral and lowered the price target from $50 to $40, sending the stock lower by 2.65 percent to $36.
Analyst Steven Milunovich sees a “mediocre” outlook for storage spending “as users pause and consider their alternatives.”
NetApp faces “rising competition from start-ups as well as the cloud,” according to the analyst.
In a recent UBS survey of Chief Information Officers, “NetApp was a clear share loser with only Dell scoring worse,” said Milunovich. “Although NetApp has done well selling to cloud providers, a shift off-prem is a long-term threat,” said the analyst.
The FY15 revenue estimate was reduced from $6.46 billion to $6.33 billion, which reduced non-GAAP earnings per share estimate from $3.05 to $2.95.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in