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JPMorgan analyst Samik Chatterjee lowered the firm's price target on NetApp to $85 from $100 and keeps an Overweight rating on the shares. The analyst is taking a "defensive stance" with his networking and hardware coverage universe as he sees increasing signs of the challenging macro feed into demand trends. Chatterjee recommends investors look for diversification away from higher risk areas like enterprise spending as well as auto exposure relative to "more resilient capex spend" from cloud customers as well as telco/cable customers. He increasingly expects smartphones and TVs to cycle past trough sentiment with a rebound likely in the out-year driven by replacement cycles. This results in upgrades Amphenol, CDW, and Juniper to Overweight, and downgrades of Cisco Systems, 5F Networks and TE Connectivity to Neutral. Chatterjee also adding Qualcomm to the firm's Analyst Focus List, while removing Ciena though maintaining an Overweight rating.

Evercore ISI analyst Amit Daryanani lowered the firm's price target on NetApp to $71 from $85 and keeps an In Line rating on the shares. Daryanani is lowering estimates and price targets for select companies within his IT Hardware and Networking coverage to reflect developments that include currency, slowing PC markets, and a more conservative stance on the second half given inflation, rising rates, and geopolitical risk.

Citi analyst Jim Suva views the recent weakness in the shares of NetApp associated with the overall market as a buying opportunity. In a recent meeting, NetApp highlighted that in the last recession the company did not have recurring revenues and a flexible cloud model, Suva tells investors in a research note. The company currently has approximately 43% of recurring sales at this time and support contracts are typically three years in duration with a high percentage renewed thereafter, says the analyst. He keeps a Buy rating on the shares with a $120 price target.