NetApp's Best Hope Is Probably Its Wallet
Stephen Simpson, CFA
Stephen Simpson, CFA
Today, 12:10 PM
- In what continues a trend of positive first-day trading momentum already realized in this year's Acacia Communications, Twilio, Line, Talend and Apptio offerings.
- Initial price of $16 (+91.1%%), above originally expected range of $13-$15.
- Proceeds of the raise approximately $238M.
- Nutanix (NTNX N/A) competes in various ways with EMC/VMware (DVMT +0.6%), Hewlett Packard Enterprise (HPE -0.5%), NetApp (NTAP +3.1%), Nimble Storage (NMBL +0.8%), Pure Storage (PSTG +0.4%) and others.
Today, 9:50 AM
- Firm moves to Buy rating from prior Sell.
- Analyst Srini Nandury: "We are convinced that the company is on the right track and we believe estimates have bottomed and NetApp can grow its product revenue from current levels. NetApp now has the products and discipline to follow through on the strategy it has embarked upon.”
- Price target on NetApp (NTAP +2.2%) raised from $30 to $45 (current price $35.57).
Mon, Sep. 26, 5:14 PM
- Analyst Sherri Scribner attributes to the call availability of more efficient storage, increased industry data reduction, disproportionate legacy system sales and a shift by major cloud providers to hyper-converged infrastructure.
- Price target set at $25 (current price $35.18).
- NetApp (NASDAQ:NTAP) shares closed today lower by 1.35%.
Mon, Sep. 12, 9:24 AM
- The Wall Street Journal takes a look at the rise in use of and revenue derived from flash-based storage products over recent years.
- Pure Storage (NYSE:PSTG) and Nimble Storage (NYSE:NMBL) are highlighted with respective 9,650% and 641% annual revenue increases from 2013 to the present trailing 12 months period.
- The examination, however, cites a 20% decrease in share price for Pure Storage on the year with a 9% lower price for Nimble Storage over the same term. Competition in the enterprise data storage space, particularly in regard to flash solutions, is cited as becoming increasingly tight as demand for more efficient data centers continues to rise.
- Flash arrays offered by competitors EMC (NYSE:DVMT), IBM (IBM), NetApp (NASDAQ:NTAP), Hewlett Packard Enterprise (NYSE:HPE), Hitachi, Oracle (NASDAQ:ORCL) and others are expanding onto the market and subsequently heightening pricing pressure within it.
- Despite a competitive strain, the report goes on to assert current downcast valuations for small players in the area, especially Pure and Nimble, could pose appealing buyout opportunities going forward.
Wed, Aug. 24, 11:11 AM
- Last week, Goldman Sachs analyst Simona Jankowski noted competitive pricing pressure in reissuing a Sell rating on NetApp (NTAP -0.1%). She had, though, raised her price target to $26 from $23 (current price $34.91).
- Today, Jankowski offers a "more positive view", citing progress in an all-flash transition, strategic product portfolio trend improvement, and continued cost of goods sold and operating expense reductions. She further remains cautious on an enterprise storage market she considers challenging, though now upgrades from Sell to Neutral, with a new price target of $32.
- NetApp is up over 20% since reporting better-than-expected Q1 results last Wednesday.
Thu, Aug. 18, 3:00 PM
Thu, Aug. 18, 12:47 PM
Thu, Aug. 18, 9:31 AM
- NetApp (NASDAQ:NTAP) posted a better-than-expected Q1, though Goldman Sachs and Morgan Stanley are maintaining respective Sell and Underweight ratings on the company.
- Goldman Sachs analyst Simona Jankowski cites strong price pressure in the storage market while Morgan Stanley analyst Katy Huberty attributes the results to U.S. public sector growth skewing ONTAP 7 refreshes and "better performance in the quarter at OEM customers," something she doesn't expect to continue.
- Jankowski and Huberty raise their price targets from $23 to $26 and $21 to $24, respectively.
- J.P. Morgan and Susquehanna have issued more positive outlooks following the report.
Thu, Aug. 18, 9:17 AM
Wed, Aug. 17, 5:36 PM
Wed, Aug. 17, 4:22 PM
- NetApp (NASDAQ:NTAP) exceeded Q1 predictions, highlighted by 32% install-base deployment of Clustered Data ONTAP, a 100% Y/Y increase in free cash flow ($192M) and $228M returned to shareholders through repurchases and dividends.
- Net income of $129M vs. $89M Y/Y. Cash, cash equivalents and investments of $4.4B. Deferred revenue and financed unearned services revenue grew 8% Y/Y.
- Dividend of $0.19 payable October 26 to shareholders on record as of October 7.
- Projects Q2 net revenue of $1.265B-$1.415B and EPS of $0.51-$0.56.
- CEO George Kurian: "We remain sharply focused on operating more efficiently while delivering market-leading innovations that are aligned to our customers' business and IT transformation priorities."
- Historical supplemental data
- Financial summary
- Conference call
- Press release
Wed, Aug. 17, 4:02 PM
Tue, Aug. 16, 5:35 PM
Tue, Jul. 19, 3:39 AM
- Scientists reveal method for storing rewritable digital data at record density.
- Involves rearranging individual chlorine atoms on a sheet of copper.
- Provides roughly 100x more data per square inch than the world's most efficient hard drive.
- Could write the entire contents of the Library of Congress in a space smaller than a dust mite.
- Key challenge is speed.
- Source links: Nature, Popular Mechanics
- Also see Richard Feynman's There's Plenty of Room at the Bottom lecture
- Disk drive stocks: OTCPK:CBEX, EMC, HILL, HTCH, IBM, IMN, IVAC, NTAP, QBAK, SXCL, SMIT, STX, VECO, WDC
Wed, Jun. 1, 5:41 PM
Thu, May 26, 9:18 AM| Thu, May 26, 9:18 AM | 1 Comment