NetApp (NTAP, $49.78) gets rating downgrade and price target cut from Goldman Sachs, on enterprise market concerns
On Thursday, NetApp shares got a rating downgrade and a price target cut from Goldman Sachs analyst Rod Hall.
Hall lowered his rating on the cloud data services company’s stock to sell from buy. He slashed his price target on the shares as well.
The analyst is concerned that trade tensions and economic uncertainty will weigh on enterprise spending, thereby making NetApp vulnerable. Hill indicated in his note that NetApp’s Enterprise License Agreement guidance of 2% of total revenue in FY’20, which is heavily second-half loaded, may be difficult to achieve given that the deals tend to largely involve larger enterprise customers.
However, several other analysts might have had a somewhat different view in the recent past, regarding NetApp shares. Cowen analyst Karl Ackerman in August upgraded NetApp stock to market perform from underperform and hiked his price target to $45 from $40. Last month, Susquehanna analyst Mehdi Hosseini upgraded his rating to positive from neutral, and also raised his one-year price target to $75 from $54.
NTAP's RSI Indicator leaves overbought zone
The 10-day RSI Oscillator for NTAP moved out of overbought territory on May 30, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 42 instances where the indicator moved out of the overbought zone. In of the 42 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where NTAP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NTAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NTAP broke above its upper Bollinger Band on June 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 12, 2023. You may want to consider a long position or call options on NTAP as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for NTAP just turned positive on May 15, 2023. Looking at past instances where NTAP's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
NTAP moved above its 50-day moving average on May 15, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NTAP crossed bullishly above the 50-day moving average on May 15, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NTAP advanced for three days, in of 351 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 278 cases where NTAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (13.106) is normal, around the industry mean (4.124). P/E Ratio (12.255) is within average values for comparable stocks, (44.636). Projected Growth (PEG Ratio) (0.944) is also within normal values, averaging (88.445). Dividend Yield (0.028) settles around the average of (0.046) among similar stocks. P/S Ratio (2.454) is also within normal values, averaging (12.248).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NTAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NTAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Provides data management and storage solutions
Industry ComputerPeripherals
NTAP and
Correlation & Price change
A.I.dvisor indicates that over the last year, NTAP has been closely correlated with HPQ. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if NTAP jumps, then HPQ could also see price increases.
| Ticker / NAME | Correlation To NTAP | 1D Price Change % | ||
|---|---|---|---|---|
| NTAP | 100% | +1.30% | ||
| HPQ - NTAP | 71% Closely correlated | +0.94% | ||
| WDC - NTAP | 70% Closely correlated | +1.37% | ||
| DELL - NTAP | 69% Closely correlated | +1.73% | ||
| STX - NTAP | 66% Closely correlated | +1.21% | ||
| PSTG - NTAP | 66% Loosely correlated | -2.52% | ||
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