Citigroup Upgrades Network Appliance

Analyst Paul Mansky says the network data storage device company has been primarily a revenue growth story over the last year to two

Citigroup upgrades network data storage device company Network Appliance (NTAP ) to hold from sell.

Analyst Paul Mansky says he is upgrading Network Appliance because of two factors: consensus expectations have come down and April business has improved.

He says his channel checks show revenue gap was closed by a modest uptick in end-demand, coupled with more aggressive pricing in hardware. He notes the company has been primarily a revenue growth story over the last year to two.

Mansky expects better balance heading into fiscal 2006 (ending April). For now, he keeps his earnings per share estimates of 62 cents for fiscal 2005 and 78 cents for fiscal 2006, but raises $25.50 price target to $30.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
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