Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on Nutanix, retaining the price target of $95.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors that highlight Nutanix’s strong financial performance and potential for growth. Despite some challenges, such as lengthened sales cycles in the U.S. Federal sector and the impact of tariffs, Nutanix is ahead of its revenue, operating margin, and free cash flow guidance set during the 2023 analyst day. The company is expected to provide robust guidance for fiscal 2026, with anticipated revenue growth in the mid-teens, reflecting a reasonable deceleration from the previous year due to factors like the maturation of its subscription transition.
Additionally, Nutanix’s strategic partnerships with major companies like Dell, Cisco, and Red Hat present opportunities for market share gains against competitors such as VMware. The company’s valuation remains attractive, with shares trading at a lower multiple compared to its price objective. Mohan expects strong operating margins and free cash flow in fiscal 2026, further supporting the Buy rating. Overall, the combination of strategic positioning, financial health, and growth prospects underpins the positive outlook for Nutanix’s stock.
In another report released on August 11, RBC Capital also maintained a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NTNX in relation to earlier this year.