The Street continues to underappreciate NetApp's software business and ascribe more importance to the hardware business despite accounting for 25% of revenue.
Newer software offerings such as Astra (Kubernetes and container storage), SPOT compute optimization software, and cloud data services to drive growth.
We view the new NetApp as a software company more than a hardware company, given software and services revenue drives growth and profits.
NetApp continues to gain share in the All-Flash-Array market, and as businesses head back to offices, we expect on-prem storage sales to accelerate.
Estimates are conservative; compelling valuation, solid cash flow, a decent dividend payout, and an impending multiple expansion make NetApp a buy.
Eat it trolls