- NetApp beat estimates on all the relevant metrics and guided up. Investors' indifference, despite solid results last several quarters, provides longer-term investors a buying opportunity on a strategic infrastructure player.
- Investor apathy is driven by the view that NetApp is a legacy hardware company rather than a software asset that is tied to the growth of Cloud and Flash Memory.
- NetApp continues to gain share in the all-important All-Flash-Array market, most probably from Dell. The Cloud Data Services software business is signing new customers rapidly and is growing very fast.
- NetApp generates solid cash flow, pays a decent dividend, grows its EPS, and buys back shares. NetApp is executing on the product and business sides well.
- Despite NetApp raising guidance, we believe estimates are conservative, and we expect it to beat and raise when it reports results in August. Compelling valuation makes NetApp a buy.
For further details see:
NetApp: Investor Apathy And Compelling Valuation Make It A Buy