We recently published a list of 10 Stocks That Analysts Think Will Go Up. In this article, we are going to take a look at where NetApp, Inc. (NASDAQ:NTAP)) stands against other stocks that analysts think will go up.
The S&P 500 index touched an all-time high this week as Mark Zuckerberg’s company’s 20-day streak finally came to an end, adding $320 billion to the company’s market cap. The semiconductor stocks once again drove the broader market. However, as the rally cools down, the focus is shifting back to Donald Trump’s tariffs. Automobiles, pharmaceuticals, and semiconductor companies are expected to be hit in the next wave of tariffs which has forced investors to rethink their strategies.
As investors and analysts try to figure out where the market is headed, some companies are more likely to go up in share price than others. We looked through the recent analyst upgrades and shortlisted 10 companies that are likely to go up according to analysts. We also looked at the factors driving this analyst optimism.
To come up with the list of 10 stocks that analysts think will go up, we only considered stocks with a market cap of at least $1 billion that were upgraded this week.
A multi-monitor workstation displaying data-centric services.
NetApp, Inc. (NASDAQ:NTAP)
NetApp, Inc. (NASDAQ:NTAP) provides products and services related to data infrastructure globally. The company has two segments through which it earns its revenue: Hybrid Cloud and Public Cloud. The stock was recently upgraded from Underperform to Neutral, with the price target bumped up from $121 to $128.
The increasing demand for public cloud as a result of the AI infrastructure spending has expanded the company’s Total Addressable Market. As NetApp, Inc. (NASDAQ:NTAP) continues to gain market share and keep gross margins table at 71%-72%, the growth prospects look solid.
Additionally, analysts see operating margins growing to around 30% with healthy free cash flows. All this is likely to improve the stock’s prospects, though outperformance is still unlikely, hence the upgrade to Neutral only.
Overall, NTAP ranks 3rd on our list of stocks that analysts think will go up. While we acknowledge the potential of NTAP as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as NTAP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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