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NetApp Inc NTAP

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

NetApp’s Strong Quarter Driven by Cloud Demand and All-Flash Array Advancements; Raising FVE to $54

Mark Cash Senior Equity Analyst

Analyst Note

| Mark Cash |

No-moat NetApp reported a strong quarter with revenue at the high end of previous guidance and non-GAAP earnings exceeding guidance as nascent ventures gain momentum with the market. Quarterly strength resulted primarily from growth in NetApp’s all-flash array, or AFA, and cloud services segments. We believe that the COVID-19 pandemic accelerated the digital transformations and shift to the cloud undertaken by many of NetApp’s customers, which we think bodes well for the adoption of hybrid-cloud ecosystems and flexible data management solutions. As a result, we are raising our fair value estimate to $54 from $49 per share, but still view shares as overvalued.

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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
Sector Technology
Industry Computer Hardware
Most Recent Earnings Jan 31, 2021
Fiscal Year End Apr 30, 2021
Stock Type Cyclical
Employees 10,800

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