NetApp (NASDAQ:NTAP) Strong on Product Cycles, Margins, Secular Catalysts

NetApp (NASDAQ:NTAP) is getting a very bullish outlook from Canaccord Genuity, as they turn their focus to those in the sector which "ramping product cycles, positive secular catalysts and stable to improving operating margins. We view NetApp as unique in its positioning along each."

Canaccord said, "As part of a broader 2011 Technology Outlook report published today, we have identified NetApp as a Top Pick stock for 2011, along with Juniper (Nasdaq:JNPR) and Cisco (Nasdaq:CSCO)(GARP).

"Strong 2010 performance for several of our stocks, including NetApp, was driven by 1H revenue momentum followed by 2H operating margin and multiple expansion. As comparables universally stiffen, our focus shifts to those with ramping product cycles, positive secular catalysts and stable to improving operating margins. We view NetApp as unique in its positioning along each.

"Our CY 2011 earnings power model suggests a range from $2.08 to $2.25 vs. our current $2.09."

Canaccord Genuity maintains a "Buy" on NetApp, which closed Monday at $55.35, up $1.55, or 2.88 percent. Canaccord raised their price target from $56 to $58.50 on NetApp.