NetApp Faces Stock Struggles Despite Analyst Positivity

NetApp's stock struggles continue with a 32% drop from highs. While the company's Q3 adjusted EPS met expectations, they missed revenue forecasts. Analysts remain moderately optimistic, giving them a 'Moderate Buy' rating, indicating potential upside.

Date: 22-03-2025

AI Rating: 5

NetApp's Performance Overview

NetApp, Inc. operates a market cap of $18.7 billion, categorized as a large-cap stock. The company has recently faced significant stock performance challenges, dropping 32% from its 52-week high of $135.45. In the last three months, the stock dipped 22.3%, underperforming the broader Dow Jones Industrials Average, which decreased by only 2.1%. Over a longer time frame, NTAP faced a YTD decrease of 20.7%, significantly trailing behind the DOWI's 1.4% decline and a 52-week decline of 11.8%, while the Dow Jones increased by 6.2%.

Analysis of Earnings and Revenue

Despite a somewhat positive report regarding Q3 2025 adjusted earnings of $1.91, which met Wall Street expectations, NetApp's shares fell by 15.6% after the announcement. This was attributed to a missed revenue forecast, with reported revenue of $1.6 billion. For the fiscal year 2025, NetApp anticipates earnings in the range of $7.17 to $7.27 per share alongside projected revenue between $6.5 billion and $6.6 billion.

Market Sentiment and Future Outlook

NetApp stocks have been continuously trading below their 50-day and 200-day moving averages since March. However, there is some optimism among analysts, as indicated by a consensus 'Moderate Buy' rating from 19 analysts. Despite current struggles, analysts believe the stock could experience upside, especially since it trades below the mean price target of $121.20.

Stocks: NTAP DOWI DELL