William Blair analyst Jason Ader has maintained their bullish stance on NTNX stock, giving a Buy rating today.
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Jason Ader has given his Buy rating due to a combination of factors that highlight Nutanix’s strong fundamentals despite recent challenges. The company’s solid bookings growth and increased free cash flow guidance indicate a robust underlying business. Although Nutanix faced revenue recognition delays due to a higher mix of bookings with future start dates, the overall bookings exceeded expectations, and annual recurring revenue showed a healthy growth of 18%.
Furthermore, the company’s total remaining performance obligations grew by 26% year-over-year, demonstrating strong customer commitment, especially for VMware migrations. Despite a disappointing quarter in terms of revenue, with a slight miss against consensus, Nutanix’s profitability metrics, such as non-GAAP operating margin and EPS, remained competitive. These factors, along with management’s conservative approach to future guidance, underpin Ader’s confidence in the company’s long-term potential.
According to TipRanks, Ader is a 3-star analyst with an average return of 2.6% and a 45.78% success rate. Ader covers the Technology sector, focusing on stocks such as Nutanix, Varonis Systems, and NetApp.