Forecast Of The Day: NetApp’s Product Revenue

+17.65%
Upside
62.99
Market
74.12
Trefis
NTAP: NetApp logo
NTAP
NetApp

What?

NetApp’s (NASDAQ:NTAP) Product Revenue – which includes sales of storage-based hardware and related software – declined from $3.76 billion in 2019 to about $3 billion in 2020 and remained roughly flat over 2021. Trefis expects the number to rise to almost $3.20 billion in 2022.

Why?

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While revenues plunged in 2020 due to lower enterprise IT spending through the Covid-19 pandemic, we expect sales to pick up from 2022 as macroeconomic conditions continue to improve and IT spending rises.

So What?

We think NTAP stock is undervalued at current levels. We value the stock at about $98 per share, which is 22% ahead of the current market price.

See Our Complete Analysis For NetApp

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Feb 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 NTAP Return -8% -14% 125%
 S&P 500 Return -5% -10% 92%
 Trefis MS Portfolio Return -3% -12% 246%

[1] Month-to-date and year-to-date as of 2/25/2022
[2] Cumulative total returns since the end of 2016

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