Deutsche Bank upgrades NetApp on 'compelling risk-reward,' cuts HP Enterprise
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Investment firm Deutsche Bank was busy on Tuesday, as it upgraded NetApp (NASDAQ:NTAP) shares, citing a "compelling risk-reward," but it downgraded competitor HP Enterprise (NYSE:HPE) on concerns over "cautious IT spending."
Analyst Sidney Ho raised the rating on NetApp (NTAP) to buy from hold, but lowered the rating on HP Enterprise (HPE) to hold, noting there have been "incremental signs of enterprise spending weakness from both software and semiconductor companies."

"As supply challenges are expected to ease in [the second half of 2022], we are most interested in how the handoff from supply easing to demand weakening plays out," Ho wrote in a note.
NetApp (NTAP) shares rose nearly 2.5% to $66.04 in premarket trading, while HP Enterprise (HPE) fell slightly more than 1% to $13.52.
In addition to the ratings changes, Deutsche Bank trimmed the price target on Apple (AAPL) to $175 from $200, citing a "more cautious view on the macro environment."
Earlier this month, NetApp's (NTAP) Chief Financial Officer Michael J. Berry bought $360,000 worth of shares in the open market.
Analysts have been positive on NetApp's stock (NTAP). It had an average rating of BUY from Wall Street analysts, while Seeking Alpha authors rate it a slightly lower BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rated NTAP a HOLD.