NetApp (NTAP) is experiencing strong demand for storage ahead of its fiscal Q1 earnings results, with AI inference, data preparation and data-lake modernization serving as the most relevant near-term drivers, BofA Securities said in a note Monday.

The brokerage said it does not expect meaningful demand destruction from price increases, although mix could shift more to lower priced fabric-attached storage.

The company is expected to continue benefiting from large deals, AI wins, all-flash upgrades and public cloud growth, and Keystone should also see continued strength, the brokerage said.

The company is scheduled to report fiscal Q1 financial results Wednesday. BofA models fiscal Q1 revenue of $1.84 billion and earnings per share of $2.13, mostly in-line with Street estimates. For fiscal Q2, the brokerage said it expects management to guide for revenue in a range of $1.75 billion to $1.90 billion and EPS of $2.10 to $2.20.

The brokerage said management could raise its fiscal 2027 guidance, as it raised its full-year estimates to $7.9 billion in revenue from $7.5 billion, and $8.95 in earnings from $8.85.

BofA Securities raised its price target to $206 from $180, and kept its neutral rating on the stock.

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