DA Davidson analyst Mark Kelleher raised his price target on NetApp to $66 from $64 following Q3 earnings, saying that despite the pressure from memory and storage component shortages, gross margins remained robust thanks to less discounting and the ability to pass component pricing to customers. Longer-term, Kelleher notes that the company has a rejuvenated product line, a strong cash flow, and has also been successful in realigning its business into the Flash storage market. The analyst keeps his Neutral rating, adding that NetApp's positive prospects are reflected in valuation.