Stifel analysts recently upgraded their rating of NetApp (NASDAQ:NTAP)) to Buy from Hold with a $75 per share price target. The move followed investor meetings with the company’s CFO Mike Berry and IR VP Kris Newton. During the meetings, the management was able to convey difficult predictions about demand levels, as well as the company’s initiatives to cope with the current macro environment.
NetApp’s management commented that the weaknesses experienced in the all-flash business is mainly due to lower spending from large enterprise customers and can be partially addressed through a 8% headcount cut, sales force reorganization, lower component costs and the introduction of QLC-based, lower-cost all-flash arrays (C-Series). As a result, Stifel is more confident in its FY24 estimate at $5.49.
NetApp is an American computer storage and data management company headquartered in Sunnyvale, California. It provides data storage and management services, as well as point products like disk storage, cloud and flash arrays. Founded in 1992, it has grown to become a player in the markets of global data management.
Michael A. Berry is the CFO of NetApp since January 2019 and has a Bachelor’s degree in Electronics Engineering from Ohio University and an MBA from Indiana University. Prior to that, he held various roles at Lam Research Corporation and was the senior vice president and CFO at Inspur Electronic Information Technology.