Oppenheimer bullish on Nutanix, initiates with an Outperform

As previously reported, Oppenheimer initiated coverage of Nutanix (NTNX) with an Outperform rating and $90 price target The firm says its bullish stance is predicated on its view that Nutanix is a beneficiary of the industry demand shift toward HyperConverged Infrastructure; has an opportunity to successfully displace VMware over time, which is facing customer resistance at renewals due to price hikes; and can capitalize on demand for unstructured data for building and delivering AI applications. Oppenheimer is confident in the company’s long-term virtualization/AI inferencing opportunity, despite the recent slowdown in U.S. Federal and a longer than previously anticipated timeline for expansion into standalone virtualization.