Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
NetApp (NTAP): Revolutionizing Hybrid Cloud Deployments with AWS Outposts & Enjoying Secular Tailwinds – What’s the Impact, outlook & its key Catalysts ?
NetApp (NTAP) posted strong Q2 FY25 results, with revenue of $1.66 billion (+6% YoY, +$13.10M beat) and adjusted EPS of $1.87 (+$0.09 beat), underscoring disciplined execution and leadership in data infrastructure. All-flash storage grew 19% YoY to a $3.8 billion run rate, while Public Cloud revenue rose 9% YoY, with first-party and marketplace storage services up 43%. Gross margins of 72% and record operating margins of 29% reflect cost efficiency and a favorable product mix. NetApp raised FY25 guidance to $6.54–$6.74 billion revenue (+6% YoY) and $7.20–$7.40 EPS, demonstrating confidence in its multi-year growth framework. Strategic tailwinds include AI-related wins across key verticals, 55% YoY growth in Keystone (Storage-as-a-Service), and leadership in Gartner’s Magic Quadrant for primary storage. Integration with AWS Outposts enhances its hybrid cloud positioning, addressing enterprise demand for resilient, compliant data solutions. Challenges include macro softness in Europe and subscription-based Public Cloud headwinds, though these appear transitory as the shift to consumption-based services accelerates. With a compelling valuation (~17x forward P/E), high-margin AI and cloud revenues, and catalysts like expanding all-flash share and AI-ready infrastructure adoption, we maintain our OUTPERFORM rating. Can NetApp sustain its momentum and capitalize on AI and hybrid cloud growth while mitigating Public Cloud headwinds?
