NetApp shares climb as Baird ups to 'Outperform'
NEW YORK—Shares of NetApp Inc. advanced on Monday after a Robert W. Baird analyst upgraded the data storage provider to "Outperform," saying its business trends look strong.
The stock rose $1.21, or 5.5 percent, to $23.15 Monday.
Jayson Noland raised NetApp from "Neutral" and raised his price target to $30 from $24, implying he expects a return of 37 percent over Thursday's close of $21.94.
In a client note, Noland said NetApp management has recently sought a more aggressive growth strategy and brand awareness campaign.
In addition, NetApp remains uniquely positioned in the data storage market, but he cautioned that "competitors large and small are attempting to be more like NetApp." The company's renewed push for growth is "critical" to continuing its competitive advantage, he said.
NetApp is also targeting an operating margin that understates the company's potential profitability, Noland said, while investor expectations are currently low and the company appears poised to weather a "historically tough" July.
Shares of NetApp have traded between $19 and $32.84 in the last 52 weeks. The stock is off 12 percent since the start of the year.
