Piper Sandler raised the firm’s price target on Nutanix (NTNX) to $42 from $40 and keeps an Overweight rating on the shares. The firm believes there are large opportunities in front of Nutanix as it drives simplicity across environments, benefits from application modernization and further HCI workload penetration across application types, new Cisco (CSCO) and other partnerships, and has a favorable competitive environment. The subscription transition is now complete, which should help the business maintain about 20% ARR, 15% billings, and 15% revenue growth, all while free cash flow should increase from $200M to $700-$900M by FY27 that implies a likely conservative FY24 guide and 17-times EV/CY25 today, Piper adds.
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