Updated Aug 17 at 11:40am ET.
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Morgan Stanley upgraded the company to equal weight, a rating that means they expect the stock to perform in line with the broader market. This is a step up from their previous underweight rating, which suggested they expected the stock to lag behind its peers.
The firm set a price target of $173. While this is an upgrade in sentiment, the target is notably lower than the current stock price of roughly $206. This suggests that while the analysts see less risk than before, they still have questions about how much higher the stock can climb from here.
Source: Morgan Stanley
NetApp has acquired JetStream Software, a company that specializes in disaster recovery and moving data between different computing environments. This deal specifically targets businesses using VMware, a popular software for running multiple operating systems on a single server.
This is a smart move for NetApp because it makes their storage tools more useful for companies trying to modernize their data centers. By making it easier to move and protect data without disrupting daily operations, NetApp strengthens its position as the software layer that connects a company's own servers to the public cloud.
Source: Business Wire
StructureCraft, a global engineering and construction firm, has moved its data infrastructure to NetApp. The company is using the platform to help its global teams collaborate on complex timber building designs and to store the massive files required for modern construction projects. While this is a single customer win, it shows that NetApp is successfully pitching its storage as the necessary foundation for companies that want to use AI-driven design tools. For a long-term owner, these types of enterprise deals prove the company can win business outside of traditional IT departments by solving specific engineering bottlenecks.
Source: Business Wire
NetApp has acquired DataPelago, a startup that specializes in making data processing faster for artificial intelligence. The deal aims to connect the storage layer directly to GPUs, the specialized chips used to train AI, which helps prevent the data "bottlenecks" that often leave expensive computing power sitting idle.
This acquisition is a clear move to make NetApp more than just a place to store files. By integrating DataPelago's technology, NetApp is trying to become the engine that prepares and moves data for AI models. If successful, this makes their software more essential to big tech customers who are spending heavily on AI infrastructure.
Source: Business Wire
NetApp will serve as the presenting partner for the NFL's 2026 game in Madrid, Spain. This sponsorship is part of a multi-year deal where NetApp acts as the league's official data infrastructure partner, helping manage the massive amounts of video and statistics the NFL generates. While marketing deals don't change the underlying value of the business, this partnership keeps the brand in front of large enterprise customers. It highlights NetApp's role in managing high-stakes, real-time data for one of the world's most visible sports leagues.
Source: Business Wire
Analysts recently shifted their tone after a flurry of updates in late May, including a notable upgrade in August. Most analysts are split on the stock, and the average target of $179 sits 13% below the current price.
Management has a perfect track record of clearing the bar they set for analysts, beating profit expectations for eight straight quarters by a steady margin.
| Expectation | |
|---|---|
| EPS | $2.11 |
| Revenue | $1.83B |
