NetApp downgraded to Underperform at BofA on weaker demand environment

BofA analyst Wamsi Mohan downgraded NetApp to Underperform from Neutral with a price target of $58, down from $70. The firm believes product revenue growth will be challenged in FY24 given the weaker demand environment and though product gross margins will see some benefits it also expects negative leverage due to lower revenue. In addition, a slowdown in public cloud creates a headwind through FY24, the firm contends.