The Strategic Positioning Of Nutanix Can't Be Denied
Pacific Crest Securities said in a note on Thursday Nutanix Inc (NASDAQ: NTNX)'s strategic positioning cannot be denied.
Viable Partner
Analysts Alex Kurtz and Steve Enders believe Nutanix remains a viable partner to Hewlett Packard Enterprise Co (NYSE: HPE) and Cisco Systems, Inc. (NASDAQ: CSCO), given its multi-hypervisor support, mature and battled-tested OS and expanding enterprise and cloud capabilities. This is despite these companies now having in-house hyper-converged infrastructure platforms.
Pacific Crest is of the view that these OEMs would need a high-end competitive solution like Nutanix that has a defined multi-year product roadmap, as Dell/EMC expands its VxRail platform.
The firm noted that Nutanix announced a strategic partnership with Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)'S Google Cloud Platform on Wednesday. Thus, the company now has integration efforts with the top 3 hyperscale providers, the firm said.
Xi: An Opportunity To Expand TAM
The firm sees the Google partnership as fitting into Nutanix' Xi platform announcement. The firm also pointed to the management's statement the company could eventually derive a license or subscription fee for data managed in public cloud via Xi.
Pacific Crest thinks executing on this vision is critical to expand its total addressable market from the near-term $11 billion for integrated systems to the $100 billion "all-in" TAM outlined at the IPO.
Pacific Crest has an Overweight rating and it reiterated its $30 price target on the shares of Nutanix.
At the time of writing, shares of Nutanix were down 1.05 percent to $19.72.
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Latest Ratings for NTNX
Date | Firm | Action | From | To |
---|---|---|---|---|
Feb 2021 | Morgan Stanley | Maintains | Equal-Weight | |
Feb 2021 | Needham | Maintains | Buy | |
Feb 2021 | KeyBanc | Maintains | Overweight |
View More Analyst Ratings for NTNX
View the Latest Analyst Ratings
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