What happened
Shares of enterprise data storage specialist NetApp (NTAP 0.88%) 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.
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.
