NetApp Falls, EMC Rises on Goldman Outlook
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Two rivals in the hot enterprise storage market were the subject today of a new report from Goldman Sachs, which said NetApp may be near the end of its run while the larger company may soon see a lift. Enterprise Storage Forum reports.
Data storage hardware and software makers EMC (NYSE: EMC) and NetApp (NASDAQ: NTAP) watched their stocks rise and fall after the pair were the subjects of rating changes by Goldman Sachs analyst David Bailey today.
NetApp, which Bailey added to his "buy" list in September and is up more than 142 percent in the last year, was downgraded from a "buy" recommendation to "neutral," primarily on valuation concerns.
In a research note this morning, Bailey pointed out that NetApp shares are now within 3 percent of his aggressive $35-a-share, 12-month price target, and its phenomenal run in the last year came during a period in which the S&P 500 gained only 3 percent.