Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

NetApp's relevance to enterprises will increase over time as the company provides more storage, management, and efficiency tools to help customers cope with data storage growth.
NetApp and EMC will continue to consolidate the data storage industry at the expense of less-focused vendors and smaller competitors.
Storage purchases can be delayed temporarily, not indefinitely. Recent sluggishness in product revenue growth could soon be followed by stronger-than-expected growth. Read more 

Bears Say

Cloud computing will dampen storage volume growth and revenue growth for the foreseeable future.
EMC has become more aggressive attacking the midrange, and NetApp could be forced to cut prices in order to preserve market share.
Server-side flash storage could reduce demand for networked storage. NetApp will have to invest heavily in product development and possibly pay rich valuations for smaller flash vendors in order to capture its fair share of this growing market segment. Read more 

Management

Overall, we view NetApp's stewardship of shareholder capital as standard. Tom Georgens took over as CEO when Daniel Warmenhoven stepped down in 2009, bringing considerable industry experience, including lengthy stays at EMC and Engenio. CFO Nicholas   Read more 

Profile

NetApp sells hardware, software, and services that enable customers to store and manage data. The company emerged as a leader in networked-attached storage by building storage   Read more 

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