Standard & Poor’s analyst Jim Yin today downgraded NetApp (NTAP) shares to Hold from Buy on a valuation basis, after the stock rose 18% yesterday on strong April quarter results.
“We remain positive on the data storage industry, as companies upgrade their data centers driven by increased usage of videos and electronic recordkeeping.,” he writes, adding that NetApp is gaining market share. But he adds that he sees “limited upside,” with the stock close to his $39 target price.
Yin adds that he is concerned about a slower growing global economy, given the financial issues in Europe.
NTAP is down 62 cents, or 1.6%, to $37.55.
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