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Investing.com - Piper Sandler has reiterated an Overweight rating and $88.00 price target on Nutanix (NASDAQ:NTNX) following the company’s recent financial results. The target sits within the analyst range of $78-$95, with the stock currently trading at $69.60. According to InvestingPro data, Nutanix maintains impressive gross profit margins of 86.37% and has achieved 16.11% revenue growth in the last twelve months.
The research firm acknowledged previously anticipated challenges around lead metrics such as fiscal fourth-quarter billings and Annual Recurring Revenue (ARR), along with concerns about fiscal year 2026 expectations due to a slowdown in the available-to-renewal base.
Piper Sandler noted that while the fiscal 2026 guidance exceeded expectations, the assumptions required to achieve these targets suggest more aggressive projections than typically seen from Nutanix, excluding the impact of large deals.
The firm highlighted several positive factors supporting its rating, including the early-stage VMware opportunity, contributions from partners like Cisco and Dell, with Pure contribution expected soon, and improving free cash flow.
Piper Sandler recommended investors buy the current dip, describing it as a "clearing event," and expressed optimism that fiscal 2026 should be a strong year for new business, particularly with large customers.
In other recent news, Nutanix reported its fourth-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.37, exceeding the forecasted $0.33. Additionally, Nutanix’s revenue reached $653 million, surpassing the anticipated $642.19 million. The company also reported a 28% year-over-year growth in product revenues and added 800 new customers during the quarter. Despite these positive results, BofA Securities lowered its price target for Nutanix from $95 to $93, citing higher expenses, while maintaining a Buy rating. These developments reflect the ongoing investor interest and analyst evaluations of Nutanix’s performance and future outlook.
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