JPMorgan upgrades NetApp to Overweight on growth acceleration

JPMorgan analyst Samik Chatterjee upgraded NetApp (NTAP) to Overweight from Neutral with a price target of $160, up from $150. The firm expects an acceleration in revenue growth helped by improving IT budgets towards datacenters and storage infrastructure in preparation of enterprises looking to leverage artificial intelligence use cases. It also sees continued share gains from the recent pace of innovation from NetApp relative to its product portfolio. While recent share gains for NetApp have been led by its recent product cycle tailwinds in relation to C-series products, “there is more to come not only in relation to C-series products but also in relation to the recent launch of Block storage,” the analyst tells investors in a research note.