Investing.com -- Susquehanna downgraded NetApp Inc (NASDAQ:NTAP) to Neutral on delayed Enterprise AI-driven demand until 2026. After the stock nearly doubled since September 2023, Susquehanna sees a less favorable risk/reward profile and expects a transitional year in 2025 as enterprises optimize data infrastructure ahead of AI adoption.
“We think there is increased downside risk to consensus, especially in the July and October quarters as compares become challenging, while Enterprise AI is not expected to help with incremental demand until CY26,” analyst said.
The firm lowered its price target to $130, noting that while NetApp has likely gained market share, enterprise AI investments are still in the early stages and won’t drive significant storage capacity expansion until 2026.
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