Bank of America Securities analyst Wamsi Mohan reiterated a Buy rating on Nutanix yesterday and set a price target of $75.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors influencing Nutanix’s financial outlook. Despite a slight revenue miss in the first fiscal quarter, the company experienced a shift in revenue recognition due to a higher proportion of bookings with future start dates. This shift is attributed to increased Broadcom migrations and revenue through third-party OEM partners, which could strengthen future performance if bookings growth remains robust.
Additionally, Nutanix’s operating margin and cash flow guidance remain stable, with the latter even seeing an increase due to upfront cash collection on bookings. The company continues to balance growth investments with margin expansion, and there is potential for further market share gains against competitors like VMware. Partnerships with major players such as Dell, Cisco, and Red Hat also present long-term upside, supporting the Buy rating despite the current revenue recognition delays.