Nutanix price target raised to $79 from $69 at KeyBanc

KeyBanc raised the firm’s price target on Nutanix to $79 from $69 and keeps an Overweight rating on the shares post a Q3 beat and an outlook for Q4 that cited a downtick in new and expansion business related to continued increase in mix of deals in the pipeline from larger deals. Specifically, management called out a greater than 30% increase in $1M-plus ACV deals the last three quarters of FY24 on a year-over-year basis and a greater than 50% increase on a dollar basis over this period. These deals are increasing in size and strategic positioning with clients taking advantage of Nutanix’s positioning to benefit from hybrid cloud, disaster recovery, and AI trends with expanding catalysts, the firm adds.