Cloud computing company Nutanix (NTNX, Financial) reported strong first-quarter results for fiscal 2025, yet its shares plummeted by 7.8% due to weak leading indicators. Analysts remain optimistic about Nutanix's future. Needham analysts, led by Mike Cikos, maintain a "buy" rating and raised their price target from $80 to $90, citing excellent revenue performance and increased operating margins. They noted that despite strong Q1 results, management's unchanged outlook for fiscal 2025 is a cautious approach.
Piper Sandler, with James Fish leading, reiterated an "overweight" rating, listing Nutanix as a top pick and raising the target price from $77 to $83. They highlighted strong revenue, free cash flow, and accelerated long-term licensing as positive indicators, despite concerns over some leading metrics.
Bank of America and RBC also maintain positive ratings, seeing opportunities for Nutanix to capture market share from competitors like VMWare and benefit from partnerships with Dell, Cisco, and Red Hat.
