William Blair analyst Jason Ader has maintained their bullish stance on NTNX stock, giving a Buy rating on November 17.
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Jason Ader has given his Buy rating due to a combination of factors that highlight Nutanix’s potential for growth and market positioning. Ader notes that Nutanix is well-positioned to capitalize on the dissatisfaction among VMware customers, who are facing unfavorable licensing and pricing changes under Broadcom. Nutanix is seen as a leading alternative for these customers, with VARs actively facilitating migrations from VMware to Nutanix, despite the challenges posed by Broadcom’s stronghold in the enterprise market.
Additionally, Ader acknowledges the strategic adjustments Nutanix has made, such as updating their ARR calculation methodology to better reflect license deployment over contract durations. While there is some concern about potential delays in Nutanix’s federal business due to sector uncertainties, Ader remains optimistic about the company’s overall trajectory. The expectation is that the significant opportunity for VMware displacement will fully materialize between 2026 and 2028, providing a solid foundation for Nutanix’s future growth.
In another report released on November 17, J.P. Morgan also maintained a Buy rating on the stock with a $78.00 price target.