NetApp Stock Surges 7% After Results, But Analysts Cautious

Shares of NetApp Inc. climbed more than 7% in premarket trade Thursday following the data-storage company's stronger-than-expected quarterly earnings in its first full quarter after the company pushed out Chief Executive Tom Georgens on June 1. Wall Street analysts, however, remained cautious on the stock, saying one strong quarter isn't enough to subdue concerns regarding customer growth. Cantor Fitzgerald maintained a hold rating and raised its 12-month stock target by a dollar to $36, but said there is "still plenty of uncertainty." Wells Fargo said that while NetApp appears to be making some progress, with earnings per share topping expectations, product revenues fell short of expectations. Sterne Agee CRT maintained a neutral rating, but lowered its price target to $31 from $33. Shares of NetApp were on track to open around $31.93 on Thursday. The stock has fallen 15% over the last three months, underperforming the broader S&P 500, down 2.2%.