Argus Research raises NetApp price target to $225 after strong Q1 2027 earnings and AI storage demand

Argus Research increased its price target for NetApp to $225, citing a 13.5% potential upside from the current price of $198.18. NetApp reported strong fiscal Q1 2027 results with revenues up 29.9% to over $2 billion and non-GAAP EPS rising 66.5% to $2.58, driven by high demand for AI-related storage and modernization efforts. The company also raised its full-year 2027 guidance, expecting revenues between $7.975 billion and $8.225 billion and EPS between $9.73 and $10.03. Despite recent stock gains, NetApp faces challenges such as margin pressures and tougher customer comparisons later in the year.