#buy netapp

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Analyst Recommendations: NetApp Inc (NASDAQ:NTAP)

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Data storage company NetApp, Inc. (NASDAQ:NTAP) [Trend Analysis] has been having a fairly bad 2015 when looking at the company’s share price, with it entering a steep downward trend. With that in mind, we look to see if any analysts think NTAP might present good value now.

Analysis

NetApp, Inc. (NASDAQ:NTAP) last traded at $35.75 after moving down -0.29% for the trading day. The company last released their quarterly earnings results on Feb 11th for the period ended Jan 205. The company reported earnings of $0.60 against a Zack’s research estimate of $0.60. This represents a 0.00% surprise on the expected result.

The current average broker recommendation for NetApp, Inc., according to Zack’s research, is 2.73, based on 25 broker ratings. With 1 being a strong buy and 5 being a strong sell, this means that on a consensus basis, analysts currently see NetApp, Inc. as a hold. The 12 month target consensus price estimate among these analysts for NetApp, Inc. is currently at $40.20.

Out of the 25 broker recommendations for NTAP, 5 recommend it as a strong buy, 1 as a buy, 16 as a hold 1 as a sell and 2 as a strong sell.

For the current quarter, the consensus analyst estimate for NetApp, Inc. (NASDAQ:NTAP) is $0.55, with analysts expecting year on year growth for the company of -22.33%

About NetApp, Inc. (NASDAQ:NTAP)

NetApp Inc., formerly Network Appliance, Inc., is a leading provider of innovative data management solutions that simplify the complexity of storing, managing, protecting, and retaining enterprise data. Market leaders around the world choose NetApp to help them reduce cost, minimize risk, and adapt to change.

[stockmarketsdaily]

New Post has been published on Stock Markets Daily

New Post has been published on http://www.stockmarketsdaily.com/time-buy-netapp-inc-nasdaqntap/8984/

NetApp, Inc: Value Perspectives (NASDAQ:NTAP)

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We look at NetApp, Inc. (NASDAQ:NTAP) [Trend Analysis] a company in the Data Storage Devices industry getting a lot of share market attention at present, to assess if it provides value for investors considering buying or selling it. Currently NetApp, Inc. is trading at $36.90 after moving down -7.28% in the previous day of trading.

NTAP is trading with a trailing 12 month P/E multiple of 19.42 and an estimated forward P/E multiple of 11.58. The stock has an estimated 5 year annual growth of 11.20% and a PEG multiple of 1.73.

Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if NetApp, Inc. is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.

That is to say, P/E simply doesn’t account for the long term prospects of NTAP. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of NTAP being 1.73, we consider NetApp, Inc. to likely be priced at fair value.

This analysis means that value buyers who do not currently hold NetApp, Inc. (NASDAQ:NTAP) should probably look for better value alternatives and investors currently holding the stock should either continue to hold or sell and look for alternatives.

The mean analyst 12 month target price for NetApp, Inc. (NASDAQ:NTAP) is currently $43.50 or 17.90% above the current price. Additionally, the stock has been as high as $43.75 and as low as $33.34 in the last 52 weeks. Analysts are estimating that NTAP will report earnings per share of $0.66 next quarter.