BMO Capital Starts NetApp (NTAP) at Market Perform

BMO Capital initiates coverage on NetApp (NASDAQ: NTAP) with a Market Perform rating and a price target of $32.00.

Analyst Tim Long commented, "We are launching coverage of NetApp with a Market Perform rating and a price target of $32. Our main concern is on the heightened competition in the storage market, particularly as it relates to legacy vendors. NetApp is ramping its hybrid and all-flash offerings, with some modest success, but market shares are trending lower anyway. The move to clustered ONTAP makes strategic sense and could help offset some of the headwinds once it reaches more scale. NetApp does have a strong balance, with 37% of market capitalization in cash. We also believe opex levels are a bit too high. Thus, there could be opportunities for a more aggressive capital return or for another restructuring program."

For an analyst ratings summary and ratings history on NetApp click here. For more ratings news on NetApp click here.

Shares of NetApp closed at $30.12 yesterday.

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