NTAP - NetApp HP shares gain after Morgan Stanley upgrades ahead of 2021 'IT hardware Renaissance'
Morgan Stanley is out with its 2021 IT hardware industry outlook and expects the sector's stocks to continue their recent outperformance, forecasting 4% faster revenue growth than consensus estimates and upside operating leverage.Over the past two months, IT hardware stocks have outperformed the S&P 500 by 14% and the broader tech sector by 17%.A group of analysts led by Katy Huberty are positive on the industry's continuing demand recovery, "positive operating leverage driving ~100 bps of margin expansion, 2x the rate implied by consensus estimates," and "1.8x average multiple expansion from record low levels."The analysts raise estimates and price targets across the group, expecting an average 2021 base case upside of 18%.NetApp ([[NTAP]] +2.8%) receives an upgrade to Overweight on its "outsized operating leverage and recent cloud outperformance."HP ([[HPQ]] +1.8%) also gets a bullish upgrade to Overweight on its "improving printing fundamentals,structurally higher PC demand, and an aggressive capital return program."Teradata ([[TDC]] -1.9%) is downgraded
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NetApp, HP shares gain after Morgan Stanley upgrades ahead of 2021 'IT hardware Renaissance'