
NetApp (NTAP) Stock Forecast & Price Target
NetApp (NTAP) Analyst Ratings
Bulls say
NetApp Inc. has demonstrated solid performance within its Hybrid Cloud segment, with product sales growing 8.8% year-over-year and strong momentum in its all-flash portfolio, as reflected by a 19% increase in annual recurring revenue (ARR). The company's operating margin improved to 28.6%, surpassing expectations and showcasing its cost management efficiency while sales experienced a 6.1% year-over-year increase driven by broad-based demand in flash storage and Public Cloud solutions. Additionally, NetApp's revised revenue guidance for FY25 indicates anticipated growth of 5.9% year-over-year, highlighting its positive trajectory in both Hybrid Cloud and Public Cloud markets.
Bears say
NetApp Inc. faces several fundamental challenges that contribute to a negative outlook for its stock. Despite achieving a gross margin of 72.0%, which exceeded expectations, the company is at risk of a terminal decline in the external storage market due to increased reliance on public cloud services and increasing competition from public cloud providers developing their own data management capabilities. Additionally, missing the fiscal year 2025 $1 billion Annual Recurring Revenue (ARR) target could lead to underperformance in stock value, compounded by declining free cash flow and heightened competition within the enterprise storage sector.
This aggregate rating is based on analysts' research of NetApp and is not a guaranteed prediction by Public.com or investment advice.
NetApp (NTAP) Analyst Forecast & Price Prediction
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