NetApp (NASDAQ:NTAP) Positioned Well for Virtualization, Data Center Trends

Acknowledging the competitive nature of the segments NetApp (NASDAQ:NTAP), at this time UBS (NYSE:UBS) sees them as being in the best position to benefit from the data center & virtualization trends.

UBS says, "We believe NTAP is one of the best positioned storage co’s to take advantage of data center & virtualization trends (w/ high vendor switching costs). While we are cognizant of competition, we do not believe the market is zero-sum-game yet & see competitive pdts focused on storage efficiency as validation of its strategy. We also view IBM’s (NYSE:IBM) storage results (13% disk growth on tougher comps) as positive.

"We raise FY3Q11 EPS to $0.51 (guidance: $0.48-$0.50; Street: $0.50) & FY11 to $2.05 from $2.03. We raise FY12 EPS to $2.36 from $2.21 (Street: $2.23) on higher rev & mgn expansion...FY11 FCF/shr decreases slightly to $2.70 from $2.79 & FY12 increases to $3.30 from $3.13."

UBS maintains a "Buy" rating on NetApp (NTAP), which closed Wednesday at $57.63, losing $1.36, or 2.31 percent. UBS raised their price target on them from $58 to $67.