Network App. could trade up to $25: UBS (NTAP, EMC, QLGC, EMLX) By Tomi Kilgore
Network Appliance (NTAP) is trading $1.41, or 12 percent higher, to $13.59. Analyst Don Young at UBS Warburg investors were "overestimating" competitive pressures, and said that based on relatively superior technology and competitive positioning, the stock should trade closer to historical valuations, which would put the stock at about $25. The stock hasn't been that high since May 25. Young also noted that the data storage was expecting sequential revenue growth of 5 percent in the third quarter, which he believes it will achieve, while rival EMC (EMC) posted a 40 percent decline. He said the company is facing less direct competition than EMC. EMC shares are adding 50 cents to $12.51. Among others in the data storage business, QLogic (QLGC) is 50 cents better at $39.60 and Emulex (EMLX) is gaining 55 cents to $23.55. |
