Nutanix’s Strong Performance and Growth Potential Justify Buy Rating

Analyst Meta Marshall of Morgan Stanley maintained a Buy rating on Nutanix (NTNX – Research Report), retaining the price target of $90.00.

Meta Marshall has given his Buy rating due to a combination of factors that highlight Nutanix’s strong performance and growth potential. The company has shown significant progress in attracting new customers and improving operational efficiency, which has led to better-than-expected financial results in the recent quarter. Despite some challenges in the Federal business sector, Nutanix’s ability to gain market share, particularly from competitors like VMware, supports a positive outlook.
Additionally, Nutanix’s annual recurring revenue continues to grow steadily, driven by successful upselling strategies and expansion with existing customers. The company’s financial metrics, such as non-GAAP gross margins and operating margins, have exceeded expectations, indicating strong operational leverage. These factors, combined with robust free cash flow, contribute to the view that Nutanix is well-positioned for long-term growth, justifying the Buy rating.

Marshall covers the Technology sector, focusing on stocks such as Coherent Corp, Pure Storage, and Hewlett Packard Enterprise. According to TipRanks, Marshall has an average return of 6.7% and a 57.84% success rate on recommended stocks.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $95.00 price target.