Nutanix: Strengthening Fundamentals, VMware Replacement Tailwinds, and AI Upside Support a Long-Term Buy Thesis

William Blair analyst Jason Ader has maintained their bullish stance on NTNX stock, giving a Buy rating on February 23.

Jason Ader has given his Buy rating due to a combination of factors that highlight Nutanix’s strengthening fundamentals and strategic positioning. He points to the company’s robust bookings growth, expanding RPO, and solid ARR trends as evidence of durable demand, underpinned by strong renewals, new customer additions, and multiyear deals that support a healthy long-term growth profile.

At the same time, he views the company’s above-consensus profitability metrics and resilient free cash flow as validating Nutanix’s ability to efficiently convert demand into earnings despite hardware and supply chain volatility. Ader also emphasizes Nutanix’s growing relevance in VMware replacement projects and enterprise AI deployments, arguing that these drivers, along with AMD’s strategic investment, outweigh near-term revenue timing headwinds and justify a constructive, longer-term Buy stance on the shares.

In another report released on February 23, J.P. Morgan also maintained a Buy rating on the stock with a $55.00 price target.