NTAP - Embedded Expectations Analysis - 2020 12 01
NetApp, Inc. (NTAP:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about their operating expenses, maintenance revenue, and customer growthSpecifically, management may be overstating the progress in their cloud business, and
they may be concerned about the continued increase in operating expenses. In addition, they may lack confidence in their ability to continue poaching customers from competitors like Hitachi and Dell, sustain their maintenance revenue, and expand gross margin. Furthermore, they may have concerns about the continued pressures in the macroeconomic and IT spending environments, and the sustainability of large enterprise deals. Finally, they may lack confidence in their ability to maintain their Azure NetApp File use cases growth, APAC performance, and their liquidity position
NetApp is the data authority for the hybrid cloud. The company's product, services and solutions portfolio include: cloud data services, which include the NetApp Data Fabric, which manages, secures, and protects the data of its customers from on-premises to public to hybrid cloud; cloud infrastructure, which helps customers build cloud-architected data centers; storage systems and software, which enables customers to modernize their IT architectures with cloud-connected flash to free the resources necessary; and support services, which enable a portfolio of technical services including independent support services, support account managers, residency services, and managed services.
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