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How NetApp, Inc. Shares Gained 13% in September

By Anders Bylund - Updated Oct 11, 2017 at 4:01PM

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The data storage expert's shares rose on positive comments from a couple of Wall Street analysts.

What happened

Shares of enterprise data storage specialist NetApp (NTAP -1.39%) rose 13.2% in September, according to data from S&P Global Market Intelligence. The surge hinged on two bullish analyst notes in the second half of the month.

So what

Analyst firm UBS upgraded NetApp to a buy mid-month and raised its price target for the stock from $42 to $45 per share, citing accelerating product sales and confidence in NetApp's management team's crisp execution. The next week, Drexel Hamilton reiterated its buy recommendation and $62 target price, pointing to an attractive buy-in valuation and another vote in support of NetApp's new management.

A case-less hard drive platter, showing the read/write head leaving a green trail of ones and zeroes on the disk platter.

Image source: Getty Images.

Now what

NetApp's shares plunged in August, only to come roaring back in September as investors slowly digested the company's business prospects. There aren't a lot of pure-play storage investments on the market nowadays, and NetApp itself might eventually become a buyout target. In the meantime, the company is delivering solid results while also retooling its product mix with a brand-new range of all-Flash SSD devices. 

All told, this stock has gained a modest 23% year to date but still trades at a very reasonable 13 times forward earnings.

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NetApp, Inc. Stock Quote
NetApp, Inc.
NTAP
$63.33 (-1.39%) $0.89

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