Citi Cuts NetApp Price Target to $110; Q2 Revenue Up 3% and SaaS Up 76%
Citi analyst Asiya Merchant reduced NetApp’s price target to $110 from $125 due to sectorwide hardware valuation adjustments. NetApp reported Q2 revenue of $1.71 billion, up 3% year-over-year (4% excluding its divested spot business), with Keystone storage-as-a-service revenue rising 76% and public cloud revenue up 18% alongside 200 AI infrastructure deals.
1. Analyst Price Target Reduction
Citi analyst Asiya Merchant reduced NetApp’s price target to $110 from $125, maintaining a Neutral rating and citing broader hardware valuation adjustments across the sector after mixed end-demand commentary.
2. Q2 Results and Segment Growth
NetApp reported second-quarter revenue of $1.71 billion, representing 3% year-over-year growth (4% excluding its divested spot business), with Keystone storage-as-a-service revenue climbing 76% and public cloud revenue rising 18% year-over-year.
3. Strategic AI and Cloud Pivot
The company closed approximately 200 AI infrastructure and data lake modernization transactions, underscoring momentum in AI-driven workloads and reinforcing its strategic shift toward consumption-based offerings and hybrid cloud services for recurring revenue expansion.