Network Appliance falls on growth concerns

Network Appliance Inc. (Nasdaq: NTAP) fell 18 percent Wednesday after the network storage provider forecast slower sales growth along with second quarter results.

Shares were down 17.25 to 79 Wednesday. After markets closed on Tuesday, the company reported triple-digit profits that topped estimates in its second quarter. Network Appliance forecast revenue growth of 10 to 15 percent a quarter, after 13 percent in the second quarter.

Bear Stearns downgraded the stock from "buy" to "attractive."

A couple analysts reiterated their ratings. Doug Van Dorsten at Thomas Weisel reiterated a "buy" rating, as did G. Ingalls at Wit Soundview.

"The quarter was generally okay but the reported upside is less extreme than what NTAP has delivered in prior periods. More important, guidance basically stayed put whereas estimates have risen off of previous quarters' reports," Ingalls said in a research note.

Ingalls also maintained his $120 price target on the stock, and "would support the stock below $85."