NetApp price target raised to $88 from $84 at UBS

UBS analyst David Vogt raised the firm’s price target on NetApp to $88 from $84 and keeps a Neutral rating on the shares. Revenue should inflect higher given easy comps, but UBS says the guidance raise is driven by margin upside. The benefit from strategic purchases likely have one or two quarters left to flow through, suggesting FY25 gross margins could be down vs. the Q3 and FY24 guide of 71%, the analyst tells investors in a research note.