NetApp's Free Cash Flow Results Imply Its FCF Margins Could Rise, Pushing NTAP 18% Higher

NetApp (NTAP), the cloud services and software company, released on Feb. 29 excellent fiscal Q3 results for the quarter ending Jan. 31. Its free cash flow soared to $484 million and a 27.9% FCF margin. As a result, NTAP stock spiked over 17% from $89.12 per share to almost $105 today.

However, based on the company's ongoing FCF margin guidance, it's possible that the stock could still be undervalued. That gives us a stock price target of over $123 per share.