Bank Of America Securities analyst Wamsi Mohan reiterated a Neutral rating for NetApp, Inc. (NTAP  ) with a price forecast of $120 ahead of the fourth quarter earnings release on May 29.

The analyst's rating reflects confidence in NetApp's ability to recover revenue, but persistent margin pressure from rising NAND costs in the second half of FY25 remains a concern.

The analyst estimates fourth-quarter revenue and EPS of $1.726 billion and $1.89, respectively, slightly above Street estimates of $1.720 billion and in line with consensus EPS.

This also aligns closely with the company's midpoint guidance of $1.725 billion and $1.89 for revenue and EPS, respectively, notes the analyst.

Going forward, Mohan sees potential risk from a pause in enterprise IT spending, which could delay storage purchases.

Additionally, aggressive pricing from competitors like Dell (DELL  ) may cap near-term upside in the storage market, says the analyst.

Also, the analyst sees FY26 revenue/EPS of $6.91 billion/$7.59 vs. consensus of $6.84 billion/$7.68.

Mohan says that NTAP is likely to exhaust prebuys in the fourth quarter, so higher input costs may pressure FY26 margins.

Also, continued public sector weakness (10%-13% of revenue) is expected to weigh on guidance, adds the analyst.

Investors can gain exposure to the stock via WisdomTree Cybersecurity Fund (WCBR  ) and iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT  ).

Price Action: NTAP shares are up 1.85% at $99.81 at the last check on Tuesday.