Should You Buy NetApp Inc (NTAP) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
99.330
1 Day change
-0.56%
52 Week Range
127.780
Analysis Updated At
2026/01/26
NetApp Inc (NTAP) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently under pressure due to bearish technical indicators, insider selling, and a recent downgrade by Morgan Stanley citing a slowdown in hardware budgets. While the company has shown modest financial growth in its latest quarter, the lack of significant positive catalysts and the cautious market sentiment make this stock a hold rather than a buy for now.
Technical Analysis
The technical indicators for NTAP are bearish. The MACD is negatively expanding, the RSI is neutral at 33.098, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key pivot levels, with support at 95.895 and resistance at 102.286.
Options Data
Bullish
Open Interest Put-Call Ratio
Neutral
Option Volume Put-Call Ratio
Technical Summary
Sell
8
Buy
1
Positive Catalysts
The company reported a solid fiscal Q2 with revenue, net income, EPS, and gross margin all showing YoY growth. Analysts have highlighted strong demand for AI solutions and cloud storage services.
Neutral/Negative Catalysts
Morgan Stanley downgraded the stock due to expectations of a 15-year low in hardware budgets. Insider selling has increased significantly (2805.26% over the last month). The stock's technical indicators are bearish, and hedge funds remain neutral.
Financial Performance
In Q2 2026, NetApp's revenue increased by 2.83% YoY to $1.705 billion, net income rose by 2.01% YoY to $305 million, EPS grew by 6.34% YoY to 1.51, and gross margin improved by 1.37% YoY to 71.96%.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent analyst ratings are mixed. Morgan Stanley downgraded the stock to Underweight with a price target of $89, citing a slowdown in hardware budgets. However, other analysts such as Northland and Barclays have raised price targets and highlighted strong performance in cloud and all-flash products. The overall sentiment leans cautious due to macroeconomic headwinds.
Wall Street analysts forecast NTAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NTAP is 124.21 USD with a low forecast of 110 USD and a high forecast of 137 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast NTAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NTAP is 124.21 USD with a low forecast of 110 USD and a high forecast of 137 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
13 Hold
0 Sell
Moderate Buy
Current: 99.890
Low
110
Averages
124.21
High
137
Current: 99.890
Low
110
Averages
124.21
High
137
Morgan Stanley
Erik Woodring
Equal Weight -> Underweight
downgrade
$117 -> $89
AI Analysis
2026-01-20
Reason
Morgan Stanley
Erik Woodring
Price Target
$117 -> $89
AI Analysis
2026-01-20
downgrade
Equal Weight -> Underweight
Reason
Morgan Stanley analyst Erik Woodring downgraded NetApp to Underweight from Equal Weight with a price target of $89, down from $117. The firm's chief investment officer survey indicated the the slowest hardware budget growth in 15 years. Resellers are expecting an "elastic demand response" to input cost inflation, which warrants a more defensive IT hardware position despite secular AI tailwinds, the analyst tells investors in a research note. Morgan Stanley has turned "more defensive," saying its recent survey work "signals the perfect storm of cautionary factors emerging."
Northland
Market Perform -> Outperform
upgrade
$120 -> $137
2025-11-26
Reason
Northland
Price Target
$120 -> $137
2025-11-26
upgrade
Market Perform -> Outperform
Reason
Northland upgraded NetApp to Outperform from Market Perform with a price target of $137, up from $120.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for NTAP
