Last Updated: 15 Sep 2024
Executive Summary
NetApp Inc. (NTAP) is a leading provider of hybrid cloud data services and data management solutions. The company has a strong financial position with a market capitalization of $24.03 billion and an EBITDA of $1.58 billion. NetApp's trailing PE ratio of 22.91 is in line with its industry peers. The company has a positive quarterly earnings growth rate of 0.696% and a quarterly revenue growth rate of 0.076%. Analysts have a consensus target price of $132.17 for NTAP, indicating a potential upside of 12.6%.
Company Overview
NetApp was founded in 1992 and is headquartered in Sunnyvale, California. The company offers a range of data management solutions, including storage systems, software, and services. NetApp's target market includes businesses of all sizes, from small businesses to large enterprises. The company has a global presence with operations in over 100 countries.
Fundamental Analysis
NetApp's financial performance has been solid in recent quarters. The company's revenue has grown by 7.6% year-over-year to $6.38 billion. Net income has also increased by 69.6% to $1.09 billion. NetApp's gross profit margin is 66.1%, and its operating margin is 19.5%. The company has a strong balance sheet with $3.6 billion in cash and equivalents and $2.8 billion in debt.
Technical Analysis
NTAP's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is 60.9, indicating that the stock is slightly overbought. The moving average convergence divergence (MACD) is also positive, indicating that the stock is in a bullish trend.
Short Term Outlook
In the short term, NTAP's stock price is likely to continue to trade higher. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock is slightly overbought, and a pullback could occur in the near term.
Long Term Outlook
In the long term, NTAP's stock price is likely to continue to grow. The company is a leader in the data management market, and its solutions are in high demand. The company's strong financial position and positive analyst sentiment are also likely to support the stock price in the long term.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on NTAP. The average target price is $132.17, indicating a potential upside of 12.6%. Two analysts have a "Strong Buy" rating, four have a "Buy" rating, 14 have a "Hold" rating, and one has a "Sell" rating.
