BofA raises target for NetApp stock to USD 220.00

Published on 10/01/2026 at 13:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue reached USD 2.03 billion in the first quarter, up 30.00 percent. NetApp stock has USD 9.73-10.03 adjusted earnings per share for fiscal 2027.

Moderner Serverraum mit Technikern zwischen beleuchteten Rechnerschränken in Rechenzentrum — Fotorealistisches Rechenzentrum symbolisiert NetApp Inc., ISIN US64120B1098, führend in Datenspeicherung und Cloud-Infrastruktur weltweit, Illustration mit AI erstellt.

NetApp (ISIN US64120B1098) received a higher valuation marker on September 30, 2026, when BofA Securities raised its price target from USD 200.00 to USD 220.00 while retaining a Neutral rating, according to Investing.com. The move puts artificial intelligence demand and NetApp's expanding data-infrastructure opportunity at the center of the valuation debate.

Target rises on AI opportunity

BofA based the higher target on a 21-times multiple of estimated calendar 2027 earnings per share, up from a 19-times multiple, the report said. The same account cited a projected expansion in NetApp's total addressable market from USD 20.00 billion today to USD 40.00 billion in three years.

The valuation call follows NetApp's first-quarter report, rather than a new quarterly release on October 1, 2026. The September 30 target change is therefore the latest dated analyst event in the stock's current news cycle.

Revenue reaches USD 2.03 billion

According to NetApp in its September 2, 2026 release, GAAP net revenue reached USD 2.03 billion in the first quarter of fiscal 2027, compared with USD 1.56 billion in the year-earlier quarter. That was a 30.00 percent year-over-year increase, while GAAP net income rose to USD 375.00 million from USD 233.00 million.

GAAP diluted earnings per share increased to USD 1.88 from USD 1.15 in the same period. Non-GAAP earnings per share reached USD 2.58, compared with USD 1.55 a year earlier, and operating cash flow was USD 503.00 million.

Guidance sets the next test

NetApp's fiscal 2027 outlook calls for revenue of USD 7.98 billion to USD 8.23 billion and non-GAAP earnings per share of USD 9.73 to USD 10.03. For the second quarter of fiscal 2027, the company guided to revenue of USD 2.03 billion to USD 2.18 billion and non-GAAP earnings per share of USD 2.54 to USD 2.64, according to NetApp.

The business mix adds a second signal to the guidance. All-flash array revenue was USD 1.31 billion in the first quarter, up 47.00 percent year over year, while Public Cloud revenue was USD 206.00 million, up 28.00 percent.

Stock range frames valuation

NetApp's NASDAQ-listed shares had a USD 93.69-216.81 52-week range as of September 30, 2026, with a market capitalization of USD 41.2 billion. The range shows why the new USD 220.00 target is a valuation statement near the upper end of the recent trading band, not a replacement for operating execution.

The company also declared a USD 0.52 per-share dividend payable on October 28, 2026, to shareholders of record on October 9, 2026, according to NetApp. For investors, the key tension is visible in the numbers: revenue and AI-linked storage demand are accelerating, while the target increase assumes that higher growth can support a richer earnings multiple.