Nutanix Shares 'Attractively Valued' Heading Into Q3 Report

Nutanix Inc NTNX shares are trading at attractive levels, according to a recent note from Credit Suisse.

The firm reiterated an Outperform rating and $38 price target ahead of the company’s third-quarter earnings release, scheduled for May 25.

“We believe the company’s proven sales model coupled with strong customer growth will drive robust revenue growth to $748mn/$1.1bn in FY17/FY18,” said Credit Suisse analyst Kulbinder Garcha.

Analysts are seeing multiple catalysts driving the growing total addressable market for Nutanix, specifically in total cost of ownership savings on CapEX and OpEx, as well as improved agility should grow the end-market opportunity, according to Credit Suisse.

Nutanix has been successful at growing its software business; software is expected to contribute 11 percent of total revenue in the quarter, up from 6.5 percent a year ago.

The figure could reach as high as 33 percent longer term, “driven by an improved level of software content including OEM deals with Dell and Lenovo Group Limited(ADR) LNVGY and meet-in-the-field arrangements with Super Micro Computer, Inc. SMCI  and Cisco Systems, Inc. CSCO,” added Garcha.

Nutanix shares closed Tuesday down nearly 3 percent at $17.02.

Related Links:

Analysts Remain Bullish On Nutanix Despite Dissapointing Guidance

Analysts Reiterate Outperform Rating On Nutanix After Meeting With Management

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPreviewsAnalyst RatingsTechTrading IdeasCiscoCredit SuisseDELLKulbinder GarchaLenovoNutanixsuper micro
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!