Analysts at Morgan Stanley lifted the price target for NetApp (NASDAQ:NTAP) to $127 from $106 in a note Wednesday, maintaining an Equal-Weight rating on the stock following the company's Analyst Day.
The US investment bank said NetApp's positioning in the storage market has improved meaningfully over the past couple of years.
At its Analyst Day event, the company is said to have laid out why they think they can gain share in block, flash, cloud and AI.
"We believe in NTAP's share gain opportunity, but are more cautious on overall enterprise IT spend environment," said Morgan Stanley. "[The] company still sees meaningful margin leverage as mix of the business switches towards flash and cloud margins improve."
While NetApp's multiple is near all-time highs, Morgan Stanley notes that there is still some room for expansion. However, they believe a healthier IT spending environment is needed to be more supportive.