NetApp (NTAP) "unexpectedly stumbled" in fiscal Q3 with revenue at the low end of guidance, and Q4 rebound expectations are "muted," Wedbush Securities said Friday in a report.

On Thursday, the company lowered guidance for the fiscal year as Q3 revenue trailed estimates by analysts. Management cited delayed deal closures and noted some European customers held back due to political and economic uncertainty, Wedbush said.

In Q4, NetApp aims to address recent execution issues and foresees weaker public spending, while a stronger dollar and the sale of Spot, a cloud optimization platform, weigh on the outlook for revenue growth, Wedbush said.

Wedbush cut its price target on NetApp stock to $110 from $120 and kept its neutral rating.

Shares of the company slumped 16% in recent Friday trading.

Price: 99.88, Change: -18.34, Percent Change: -15.54