Sanjit Singh, an analyst from Morgan Stanley, maintained the Buy rating on Nutanix. The associated price target was lowered to $82.00.
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Sanjit Singh has given his Buy rating due to a combination of factors, despite some recent challenges faced by Nutanix. The company’s Q1 revenue grew by 13% year-over-year, although it was slightly below consensus expectations. This shortfall was primarily due to a higher mix of deals with deferred start dates, which pushed some revenue out of the quarter.
Despite these timing issues, Nutanix demonstrated strong fundamentals with an 18% growth in annual recurring revenue (ARR) and a 17% increase in net-new ARR growth. Additionally, the company’s operating margin guidance for FY26 was maintained, and free cash flow was raised by $10 million, indicating financial resilience. These factors contribute to Singh’s confidence in Nutanix’s long-term potential, justifying the Buy rating.
According to TipRanks, Singh is a 4-star analyst with an average return of 5.1% and a 53.51% success rate. Singh covers the Technology sector, focusing on stocks such as MongoDB, Appian, and Snowflake.