Nutanix Inc (NASDAQ: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) (OTC:LNVGY) and meet-in-the-field arrangements with Super Micro Computer, Inc. (NASDAQ:SMCI)  and Cisco Systems, Inc. (NASDAQ:CSCO),” added Garcha.

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

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