RBC Capital lifts Nutanix stock price target to $95 from $83

On Thursday, RBC Capital Markets analyst Matthew Hedberg increased the price target on Nutanix shares (NASDAQ:NTNX) to $95, up from the previous $83, while maintaining an Outperform rating on the stock. The adjustment follows Nutanix’s recent financial report, which showcased a strong performance characterized by accelerated Annual Recurring Revenue (ARR) growth and an uptick in new customer acquisitions, also known as logos. The company, now valued at $21.08 billion, has demonstrated impressive revenue growth of 14.86% over the last twelve months. According to InvestingPro data, the stock is trading near its 52-week high, reflecting strong market confidence.

Nutanix’s positive quarterly results were further bolstered by a raised forecast for the full fiscal year. Hedberg noted that the company’s momentum is being fueled by new logo incentive programs, a growing interest in replacing VMware (NYSE:VMW) solutions, and strengthening Original Equipment Manufacturer (OEM) partnerships. These factors, alongside the maturation of Nutanix’s general pipeline, were credited for the robust quarter and optimistic outlook, rather than reliance on major deals or singular events. InvestingPro analysis reveals an impressive gross profit margin of 85.44%, with analysts projecting profitability this year. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.

Hedberg’s commentary emphasized that the quarter’s success did not hinge on any large, one-off dynamics, suggesting a more sustainable growth trajectory for the company. He expressed confidence that the recent performance could represent a turning point for Nutanix, positioning it to effectively execute its multi-year growth strategy.

The analyst concluded that the increased price target to $95 from the previous $83 is justified by the raised estimates, reflecting the company’s strong quarter and the potential for continued growth. Nutanix’s focus on expanding its customer base and strategic partnerships appears to be translating into tangible financial success, as indicated by the revised guidance and positive analyst outlook.

In other recent news, Nutanix reported impressive financial results for the second quarter of fiscal year 2025, surpassing revenue expectations with $655 million, up from the forecasted $641.5 million. The company also achieved an earnings per share of $0.46, slightly below the anticipated $0.47. Analysts at Piper Sandler, Needham, and Raymond (NSE:RYMD) James responded positively to these results, raising their price targets for Nutanix to $88, $92, and $83, respectively, while maintaining favorable ratings. Piper Sandler highlighted Nutanix’s strong performance indicators, including accelerated annual recurring revenue and billings, and noted the company’s gains in market share from VMware. Needham emphasized Nutanix’s success in securing new and expansion deals within the Global 2000, attributing growth to strong demand and industry mergers and acquisitions. Additionally, Nutanix’s management noted the U.S. Federal Government’s contribution to annual revenue, addressing concerns about weaker federal trends. Raymond James pointed out the recovery in billings and expressed confidence in Nutanix’s ability to capture market share, despite potential risks from government spending cuts. Overall, these developments reflect a period of robust growth and strategic positioning for Nutanix.

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