Update shared on 15 Nov 2025
Fair value Increased 0.10%Analysts have slightly increased their fair value estimate for NetApp to $121.27 per share from $121.14, citing steady performance relative to expectations and anticipations of recovering product margins along with resilient cloud software results.
Analyst Commentary
Recent updates from Wall Street highlight a mix of optimism and caution regarding NetApp’s outlook, as reflected by slight price target increases and recognition of both strengths and challenges within the company's recent results.
Bullish Takeaways- Bullish analysts have modestly raised their price targets, suggesting ongoing confidence in NetApp’s medium-term valuation and growth prospects.
- Cloud software results have been described as resilient, supporting the expectation that this segment will remain a strong pillar for the company.
- There is an anticipation of a recovery in product gross margins, which may drive future profitability improvements if realized.
- Despite industry headwinds, NetApp’s quarter and guidance were characterized as generally in line with expectations, indicating stable execution relative to peers.
- Bullish momentum is tempered by underwhelming overall results compared to some peers, with the July quarter viewed as less robust in contrast to others in the sector.
- Product gross margins fell short of targets, signaling ongoing challenges in certain segments.
- Specific business areas, notably the Europe and U.S. federal segments, remained weak, raising concerns about geographical and sector-specific performance.
- Some analysts believe the negative aftermarket reaction was harsher than warranted, but it reflects investor sensitivity to execution missteps and perceived underperformance.
What's in the News
- NetApp introduced new enterprise-grade AI data platform solutions, including NetApp AFX and AI Data Engine. These solutions are designed to accelerate mission-critical AI workloads and simplify hybrid multicloud data management. (Product Announcements)
- NetApp, Broadcom, and Kochasoft have partnered with Equinix to offer a new managed service for SAP workloads. This service delivers secure, cost-efficient cloud infrastructure for SAP S/4HANA and legacy migrations. (Strategic Alliances)
- An expanded collaboration with Red Hat brings enhanced virtualization and migration tools to customers. This supports Red Hat OpenShift Virtualization across both on-premises and public cloud environments. (Strategic Alliances)
- NetApp introduced new cyber resilience capabilities, including AI-powered ransomware detection and isolated recovery environments, to better secure enterprise data as part of its enhanced Ransomware Resilience service. (Product Announcements)
- The Aston Martin Aramco Formula One Team has completed migration to 100% NetApp data storage. The team is leveraging the platform for faster AI-driven simulations and trackside operations. (Client Announcements)
Valuation Changes
- Fair Value Estimate: Increased slightly to $121.27 per share from $121.14 per share, reflecting a minor upward revision.
- Discount Rate: Rose modestly to 8.54% from 8.31%, indicating a slight increase in perceived risk or cost of capital.
- Revenue Growth: Decreased fractionally to 4.27% from 4.27%, signaling a very small reduction in expected annual revenue growth.
- Net Profit Margin: Improved somewhat to 19.74% from 19.24%, suggesting a small anticipated boost in profitability.
- Future P/E Ratio: Declined slightly to 19.77x from 20.13x, indicating a marginally lower forward valuation multiple.
Disclaimer
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