How NetApp, Inc. Shares Gained 13% in September
What happened
Shares of enterprise data storage specialist NetApp (NASDAQ: NTAP) rose 13.2% in September, according to data from S&P Global Market Intelligence. The surge hinged on two bullish analyst notes in the second half of the month.
So what
Analyst firm UBS upgraded NetApp to a buy mid-month and raised its price target for the stock from $42 to $45 per share, citing accelerating product sales and confidence in NetApp's management team's crisp execution. The next week, Drexel Hamilton reiterated its buy recommendation and $62 target price, pointing to an attractive buy-in valuation and another vote in support of NetApp's new management.
Now what
NetApp's shares plunged in August, only to come roaring back in September as investors slowly digested the company's business prospects. There aren't a lot of pure-play storage investments on the market nowadays, and NetApp itself might eventually become a buyout target. In the meantime, the company is delivering solid results while also retooling its product mix with a brand-new range of all-Flash SSD devices.
All told, this stock has gained a modest 23% year to date but still trades at a very reasonable 13 times forward earnings.
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Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
