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Nutanix Shares Rally As Goldman Adds To 'Conviction Buy' List

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Nutanix Shares Rally As Goldman Adds To 'Conviction Buy' List

Goldman Sachs analyst Simona Jankowski sees a lot to like about Nutanix Inc (NASDAQ: NTNX); she added the Buy-rated stock to Goldman's Conviction List and eyes a 53 percent return.

“We view Nutanix, the leader in hyperconverged infrastructure, as a once-in-a-decade tech infrastructure story that should benefit from a long runway of double-digit growth, high gross margins, and significant operating leverage,” she said. “We also view it as a scarce asset that could be a candidate for M&A.”

3 Growth Catalysts To Watch For

    1. IT spending intentions are reaching record highs, and 18 percent of CIO’s are expected to move to hyperconverged appliances in the next two years (penetration is currently only at 3 percent).
    2. According to Jankowski, July VAR survey showed hyper converged infrastructure as the strong category of spend.
    3. The adoption of Nutanix’s FASB 2014-09 Topic 606 in August should improve the company’s revenue growth and profitability.

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Overall, Janikowski believes the company could be worth as much as $36 per share if it were just a software company, but she set a $31 price target. Based on the 12 best performing analysts at Tipranks, the average price target is $30.63.

Nutanix was trading up 9.82 percent at $22.26, during Friday's pre-market session. To read the latest news and coverage on Nutanix check out the Benzinga Pro news feed.

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Latest Ratings for NTNX

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021NeedhamMaintainsBuy

View More Analyst Ratings for NTNX
View the Latest Analyst Ratings

 

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