NetApp, Inc. (NASDAQ:NTAP) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for NetApp, Inc. (NASDAQ:NTAP) shareholders, because the company has just released its latest yearly results, and the shares gained 2.8% to US$126. NetApp reported in line with analyst predictions, delivering revenues of US$6.3b and statutory earnings per share of US$4.63, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for NetApp

After the latest results, the 17 analysts covering NetApp are now predicting revenues of US$6.55b in 2025. If met, this would reflect a satisfactory 4.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 8.8% to US$5.21. Before this earnings report, the analysts had been forecasting revenues of US$6.55b and earnings per share (EPS) of US$5.19 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.4% to US$126despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of NetApp's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values NetApp at US$155 per share, while the most bearish prices it at US$105. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that NetApp's rate of growth is expected to accelerate meaningfully, with the forecast 4.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.9% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, NetApp is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NetApp's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple NetApp analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.