NetApp, Inc. (NTAP) delivered strong first-quarter results, surpassing analysts’ expectations for both earnings and revenue. The company reported earnings of $1.56 per share, beating the consensus estimate of $1.45 per share, and revenue of $1.541 billion, exceeding the anticipated $1.526 billion. This performance was attributed to strong execution in a challenging macroeconomic environment, coupled with NetApp’s confidence in its differentiated intelligent data infrastructure platform and its disciplined management approach.
NetApp CEO George Kurian highlighted the company’s success in delivering strong revenue growth and setting records for first-quarter operating margin and earnings per share. He expressed confidence in NetApp’s ability to capitalize on this momentum by addressing new market opportunities, extending its leadership in existing markets, and delivering increasing value for stakeholders.
Despite the positive earnings announcement, NetApp shares fell by 8% on Thursday, likely influenced by analysts adjusting their price targets following the report. B of A Securities analyst Wamsi Mohan maintained an Underperform rating for NetApp but raised the price target from $105 to $110. UBS analyst David Vogt also kept a Neutral rating but increased the price target from $121 to $134.
Barclays analyst Tim Long maintained an Equal-Weight rating and raised the price target from $116 to $119. JP Morgan analyst Samik Chatterjee retained a Neutral rating and boosted the price target from $146 to $147. Stifel analyst Matthew Sheerin remained positive with a Buy rating and elevated the price target from $138 to $140.
The diverse range of price target adjustments reflects the different perspectives among analysts on NetApp’s future prospects. While some analysts remain optimistic about the company’s growth potential, others are more cautious in their outlook. The market’s reaction to the earnings announcement suggests investors may be seeking further evidence of sustained growth before fully embracing the positive results.
