Analysts Approve Of The First Quarterly Report From Nutanix
Nutanix Inc (NASDAQ: NTNX), an enterprise cloud company that obviates the need of data center infrastructure for enterprises, reported Tuesday first-quarter pro forma non-GAAP net loss per share of $0.37, wider than the $0.27 in the year-ago period, though narrower than the loss of $0.44 per share expected by analysts. Revenues nearly doubled to $166.8 million. The company's second-quarter guidance was upbeat.
Sell-side analysts cheered the news, approving of the company's results and predicting a bright future for the company. Here are snippets from the views expressed by the analyst community.
Oppenheimer: Enterprise Data Center Spending Sweet Spot
Oppenheimer said it believes the company is well positioned at the sweet spot of enterprise data center spending. The firm believes the company can maintain a leadership position, despite competitive pressure.
Citing the quarterly results and the strong outlook, Oppenheimer raised its estimates. The firm believes the company can maintain its hyperconverged leadership position due to its aggressive investment in technology and sales channels.
The firm maintains its Outperform rating on the shares of the company, and it has a $38 price target for the shares.
JPMorgan: Upending IT Infrastructure Playbook
JPMorgan analyst Mark Murphy referred to the impressive results posted by the company, beating expectations across all metrics. The analyst also noted guidance was above the consensus estimate.
The firm believes Nutanix's compelling value proposition is completely reinventing the IT infrastructure playbook. While the competitive landscape for hyperconverged infrastructure continues to evolve, the firm is of the view that Nutanix leads the pack in terms of market share as well as mind share.
JPMorgan expects Nutanix to continue to grow revenue and billings at a fairly strong clip. Despite its very favorable view on the company and the technology, the firm thinks the risk/reward is fairly balanced at current price levels.
The firm has a Neutral rating on the shares of the company, while it upped its price target to $35 from $33.
Credit Suisse: Robust Revenue Growth Ahead
Credit Suisse analyst Kulbinder Garcha believes the company has a unique technological advantage that will disrupt the IT infrastructure market in the form of hyperconvergence. Savings on capex and opex and improved agility, according to the analyst, should grow the end-market opportunity.
Credit Suisse believes the company's proven sales model coupled with strong customer growth will drive robust revenue growth to $764 million in 2017 and $1.2 billion in 2018.
Credit Suisse has an Outperform rating and a $38 price target on the shares of Nutanix, although it acknowledged meaningful risk in near to medium term, given the high valuation and the intense scrutiny on its growth profile and margin dynamics.
At time of writing, shares of Nutanix were down 5.34 percent at $32.27.
Latest Ratings for NTNX
|Mar 2017||Morgan Stanley||Downgrades||Equal-Weight||Underweight|
|Nov 2016||JP Morgan||Maintains||Neutral|
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