The company specializes in the design, manufacturing and marketing of equipment for managing and storing network data. The stock should experience a rebound in future sessions.
The company shows strong fundamentals. Net margin is expected to rise by more than 26% in the current fiscal year for total income increase of almost 27%. Furthermore, the stock enjoyed of positive revisions on the last 12 months in terms of EPS (+11% for 2014 and +20% for 2015), this by analysts polled by Thomson-Reuters for the last 12 months. In addition, the consensus on Netapp remains buyer overall.
Technical patterns are encouraging. The stock dropped dramatically on the last four sessions and is actually oversold. A test of the short term support at USD 37.4 should take place on future sessions. Thus a rebound on prices is expected in the next days, this could lead the stock to reach the short term resistance at USD 40.6 which is our target.
According to both technical and fundamental analysis, the timing seems suitable for long position near USD 37.4. The bullish trend should allow the security to reach the USD 40.6 resistance. A stop loss will be placed under the entry point at USD 35.9.
NetApp, Inc. specializes in the design, manufacturing and marketing of equipment for managing and storing network data. Net sales break down by family of products and services as follows:
- product sales (52%): file, cache and storage servers, data management, content distribution and information synthesis softwares;
- support services (37.1%): consulting, maintenance, technical assistance and training services;
- cloud services (6.3%): cloud storage and data management services;
- professional services (4.6%).
Net sales are distributed geographically as follows: Americas (54.8%), Europe/Middle East/Africa (31.3%) and Asia/Pacific (13.9%).
NETAPP, INC. 
