Raymond James initiates coverage of Storage stocks : Raymond James initiates coverage EMC, NTAP, and BRCD with Market Perform ratings, and QLGC and ELX with Underperform ratings. Firm says that it is not clear that EMC understands the urgency to transition its sales model to leverage resellers, and thinks the stock is fairly valued in the mid-teens, which is 30x CY05 earnings power of $0.50-$0.55. Firm says NTAP continues to be the only major co that understands the power of data mgmt for customers, but the presence of Microsoft as a competitor becomes more realistic every year, and much of Microsoft's success will come at the expense of NTAP if it does not figure out how to protect itself with its own channel strategy. Firm says ELX and QLGC have no place to go but down after riding the high margin FC HBA highway, and says NICs for Ethernet are low margin business and there is no reason to think the same will not happen for SAN HBAs. Finally, changing from an OEM to a reseller biz model will be difficult for both BRCD and McData, but BRCD stands to benefit near-term from a product refresh in its installed base.