NetApp shares climb as analyst sees strong 4Q potential

Manskey said in a note to investors that he maintained his "Hold" rating but says "the shares have a growing potential to take on an attractive strategic potential over the coming months."

He expects the company to beat analyst expectations when it reports its fiscal fourth-quarter results May 21 with profit of 38 cents per share on sales of $968 million. Analysts polled by Thomson Financial expect profit of 36 cents per share on sales of $934.7 million.

Manskey did not upgrade the company as regional sales checks were weak all quarter, with a late push from international sales and indirect revenue.

He raised his price target to $29 from $26. The new price target represents a 10 percent premium on Thursday afternoon's trading price.

Shares in the Sunnyvale, Calif.-based company rose 69 cents, or 2.7 percent, to $26.03. They have traded in the past year between $19 and $39.08.