NetApp Inc (NTAP) Quote - XNAS | Morningstar

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Acceleration in Public Cloud Services, All Flash Arrays Drive Strength for NetApp; Maintain $60 FVE

Sector Strategist Abhinav Davuluri

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA | Feb 24, 2022

No-moat NetApp reported third-quarter financial results aligned with our expectations. With our longer-term caution over NetApp's ability to capture market share within the competitive landscape and alternative hyperscale options, we maintain our $60 fair value estimate and view NetApp shares as overvalued. Despite near-term supply headwinds pressuring margins, we are optimistic that growth in public cloud services and all-flash arrays will offset this in future quarters as organizations undertaking digital transformations seek NetApp storage solutions.

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NetApp Inc's Company Profile

Business Description

NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.

Contact

1395 Crossman Avenue
Sunnyvale, CA, 94089

T +1 408 822-6000

billie.fagenstrom@netapp.com

Sector Technology

Industry Computer Hardware

Most Recent Earnings Jan 31, 2022

Fiscal Year End Apr 30, 2022

Stock Type Cyclical

Employees 11,000

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