NetApp (NTAP) topped guidance across the board in its fiscal Q1 results and provided a solid revenue outlook for Q2, Wedbush said in a report Thursday.

But the stock fell as its guidance implied a deceleration in revenue and a sequential dip in margins, it said.

"While we believe guidance will prove conservative, we also see likely upside as captured in the higher than historical multiple we use to calculate our PT," the note said.

The note also pointed to difficulty finding a "clear" transformational aspect in its business model that could "meaningfully" improve its growth trajectory

Wedbush maintained its neutral rating while raising its price target to $170 from $150.

Price: 185.36, Change: +4.58, Percent Change: +2.54