Nutanix (NTNX – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mike Cikos from Needham maintained a Buy rating on the stock and has a $92.00 price target.
Mike Cikos has given his Buy rating due to a combination of factors that highlight Nutanix’s strong performance and promising future prospects. Nutanix has exceeded its guided metrics and provided guidance for the third quarter of fiscal year 2025 that is significantly higher than the expectations set by the sell-side model. This indicates a robust performance and an optimistic outlook for the company’s revenue growth.
Furthermore, Nutanix is capitalizing on a strong demand environment and industry mergers and acquisitions, which is reflected in their successful new logo and expansion deals within the Global 2000. The company’s strategic marketing efforts and emerging OEM partnerships are also contributing positively. Additionally, the management’s reassurance regarding the stable contribution from the U.S. Federal Government to annual revenue helps mitigate concerns about previous weaker federal trends. Nutanix’s disciplined approach to renewal activities and the maturation of larger competitive displacements in their pipeline are driving an increase in free cash flow, further supporting the Buy rating.
According to TipRanks, Cikos is a 5-star analyst with an average return of 12.3% and a 54.86% success rate. Cikos covers the Technology sector, focusing on stocks such as Dynatrace, Okta, and Tenable Holdings.
In another report released today, Barclays also maintained a Buy rating on the stock with a $94.00 price target.