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Investing.com - Goldman Sachs has reiterated its Buy rating and $95.00 price target on Nutanix (NASDAQ:NTNX) ahead of the company’s fiscal first-quarter 2026 results, which will be reported after market close on November 25. The analyst target represents a potential 40% upside from the current price of $67.71, aligning with the broader analyst consensus of 1.75 (Buy).
The investment bank expects Nutanix to at least meet its 14.2% revenue growth guidance despite potential concerns about federal deal activity during the company’s seasonally strongest quarter. Goldman Sachs notes that while the recent government shutdown (which ended November 12) was not incorporated into Nutanix’s guidance, federal deal linearity was more concentrated in August and September. This projection comes as Nutanix has demonstrated strong revenue growth of 18.11% over the last twelve months, according to InvestingPro data.
Goldman Sachs anticipates solid land and expand momentum for Nutanix, with channel checks suggesting healthy core business trends. The firm acknowledges that any federal deals slipping into October might result in a slightly lower beat compared to recent quarters, but views this as a timing issue rather than a demand problem. InvestingPro analysis highlights Nutanix’s impressive 86.81% gross profit margins, suggesting strong pricing power and operational efficiency.
The investment bank believes Nutanix remains well-positioned for growth driven by VMware displacement, scaling OEM partnerships, and a ramping product specialist team driving higher attach rates. Goldman Sachs notes that Nutanix stock has remained largely unchanged since reporting fourth-quarter fiscal 2025 results. With a current ratio of 1.83, Nutanix’s liquid assets comfortably exceed its short-term obligations, providing financial flexibility to execute its growth strategy.
Goldman Sachs sees Nutanix as undervalued at 19x EV/FCF (FY27), given the company’s progress toward its hybrid multi-cloud platform vision, which the firm believes can support durable mid-to-high teens growth with high-20% free cash flow margins. While Nutanix trades at a high P/E ratio of 103.64, its PEG ratio of just 0.43 suggests it may be attractively valued relative to its growth potential. For deeper insights into Nutanix’s valuation and over a dozen additional ProTips, access the comprehensive Pro Research Report available exclusively through InvestingPro.
In other recent news, Nutanix reported a strong performance in its fiscal fourth quarter, with revenue growth of 19.2%, surpassing the consensus estimate of 17.6%. The company’s operating income margin reached 18.3%, exceeding both the consensus expectation of 15.9% and the company’s own guidance. Following these results, KeyBanc maintained its Overweight rating on Nutanix with a price target of $95.00. Piper Sandler also reiterated its Overweight rating, setting a price target of $88.00, despite acknowledging challenges related to fiscal fourth-quarter billings and Annual Recurring Revenue. However, Northland downgraded Nutanix from Outperform to Market Perform due to concerns over the expected tailwind from VMware customer migrations. In a strategic move, Nutanix has renewed its alliance with Leostream to enhance virtual desktop infrastructure solutions. Additionally, Greg Lavender, former Chief Technology Officer at Intel, has been appointed to Nutanix’s board of directors, bringing over 40 years of technology experience to the company. These developments highlight Nutanix’s ongoing efforts to strengthen its market position and leadership team.
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