U.S. data storage specialist NetApp could return to $50 a share in the coming year on solid cash flows and signs its revenues might grow again, Barron's said in its latest edition published on Sunday.
Its cash flow after subtracting it on its balance sheet is equivalent to 14 percent of its stock market value. That is above the free cash yield of Apple and Microsoft, both at 9 percent, the financial weekly said.
As for improved demand for NetApp's products, part of it could come from FlashRay, a new flash-based storage system set to launch in late 2014, the paper said.
NetApp has also overhauled its Data Ontap operating system which protects and manages data at both its customers' data centers and cloud vendors such as Amazon, it said.
NetApp along with market leader EMC Corp, has been losing business to newer storage technology vendors including Nimble Storage Inc and Pure Storage.
"But profits remain rich, and there's reason to believe NetApp will soon return to revenue growth," the paper said.
With its solid cash flows, the Sunnyvale, California company could acquire other companies or become a target itself, Barron's said.
NetApp stock closed at $35.48 on Friday, compared with more than $50 three years earlier.
(Reporting by Richard Leong; Editing by Frances Kerry)