NetApp (NTAP) Tumbles 9% on Downgraded Rating, Price Target

Core Viewpoint - NetApp Inc. (NASDAQ:NTAP) has experienced significant stock price declines following a downgrade from Morgan Stanley, which has raised concerns about future revenue growth due to reduced enterprise budgets and rising memory costs [1][2]. Group 1: Stock Performance - NetApp's stock fell by 9.34% to close at $94.11, marking a continuation of losses for a second consecutive day [1]. - The downgrade from Morgan Stanley has led to a revised price target of $89, down from $117, reflecting a 24% decrease [2]. Group 2: Market Conditions - The downgrade is attributed to reduced enterprise budgets for storage hardware and increasing memory costs, which are expected to slow revenue growth in 2027 [2]. - Despite the potential growth in the artificial intelligence sector, NetApp's 10% revenue exposure to public cloud services is not anticipated to significantly impact results in the near term [3]. Group 3: Company Developments - NetApp has recently appointed Paul Fipps to its board of directors, who brings over 20 years of experience in technology-driven growth and customer transformation [4].