NetApp, Inc. (NASDAQ:NTAP), F5 Networks, Inc. (NASDAQ:FFIV) – Morgan Stanley downgrades telecommunications and networking industry stocks, NetApp and Hewlett Packard

  • Morgan Stanley Analyst Meta Marshall downgraded his industry view on telecommunications and networking equipment to Cautious from In-Line as corporate data points weakened and the dollar strengthened.
  • Given their backlog, Marshall saw equipment and storage companies “sound good” on the first quarter earnings call.
  • Marshall saw signs of weakness building up, especially a more cautious hardware blitz and, most notably, reseller checks pointing to softer pipelines in the second half.
  • Marshall demoted NetApp Inc. (NASDAQ: NTAP) with a price target of $91 (up 18%), citing a tough near-term setup.
  • Marshall demoted F5 inc. (NASDAQ: FFIV) at Equal Weight with a price target of $250 (up 10.5%), dropping it as a top pick.
  • she downgraded Hewlett Packard Enterprise Co. (NYSE: HPE) to underweight with a price target of $15 (down 5.2%).
  • While HP Enterprise’s current valuation is “not difficult”, it has seen the stock underperform over the next 12 months given a combination of weak CIO data, value reseller comments added, 60% of revenue from servers/storage and enterprise. European focus.
  • It also cut price targets for several others in the space.
  • Price action: HPE shares traded down 1.21% to $15.62 when last checked on Tuesday.

Latest reviews for NTAP

Date Solidify Stock Since For
March 2022 Barclays Updates Equal weight Overweight
February 2022 Wells Fargo Maintains Equal weight
February 2022 German Bank Maintains Hold

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