Examining NetApp (NTAP) Valuation After Recent Share Price Pullback

NetApp (NTAP) shares picked up slightly in today’s trading session, gaining just over 1%. The stock has retreated nearly 6% over the past month, following a period of steadier performance since the start of the year.

See our latest analysis for NetApp.

Zooming out, NetApp’s momentum has lost some steam recently, but the bigger picture still favors patient investors. The last twelve months delivered a modest total shareholder return of -4.9%, yet long-term holders are sitting on a remarkable 144% total return over five years. This showcases real staying power even with intermittent pullbacks.

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With shares currently trading below analysts' price targets and at a notable discount compared to intrinsic value, investors might wonder if NetApp is undervalued right now or if the market has already factored in all future growth potential.

Most Popular Narrative: 7.9% Undervalued

NetApp’s last close price sits below the narrative fair value, hinting at analyst expectations for more upside ahead based on a potent mix of growth drivers. What’s really fueling this outlook? The narrative reveals a catalyst that could shape the next big move.

Accelerating adoption of AI and analytics workloads across industries is driving demand for unified, high-performance, and scalable data infrastructure, with NetApp securing over 125 AI wins in Q1 (more than doubling year-over-year). This trend is expected to drive revenue and earnings growth as AI deployments move from proofs-of-concept to large-scale production.

Read the complete narrative.

Want an inside look at why analysts are leaning bullish? This valuation rests on high-impact forecasting such as expanding profit margins and a major shift in future earnings power. Discover which assumptions could change the whole math behind NetApp’s current market price, and what surprises might lie within this fair value calculation.

Result: Fair Value of $121.14 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in key geographic segments and ongoing pressure on product revenue could quickly shift the current bullish outlook for NetApp.

Find out about the key risks to this NetApp narrative.

Build Your Own NetApp Narrative

If you think there's another angle to NetApp's story or want to test your own theories, dive into the data and craft a narrative in just a few minutes. Do it your way

A great starting point for your NetApp research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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