Stifel analyst Matthew Sheerin said his recent survey of storage-focused value-added-resellers indicated a "highly bullish" tone on all-flash-array spending and he raised his July-quarter estimates for both NetApp (NTAP) and Pure Storage (PSTG) to above consensus following the checks. Despite what he sees as a "relatively stretched valuation," he remains positive on Pure Storage shares, Sheerin tells investors. He maintains a Buy rating and raised his price target on NetApp to $91 from $80 ahead of the company's earnings report, due on August 15. Sheerin keeps a Hold rating on Pure Storage as he sees continued investments keeping operating leverage in check.

Bearish flow noted in NetApp with 1,299 puts trading, or 2x expected. Most active are 4/26 weekly 98 puts and 4/26 weekly 97 puts, with total volume in those strikes near 830 contracts. The Put/Call Ratio is 2.39, while ATM IV is up over 1 point on the day. Earnings are expected on May 30th.