Analyst Wamsi Mohan of Bank of America Securities reiterated a Buy rating on Nutanix, retaining the price target of $93.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors including Nutanix’s strategic positioning and growth potential. The company has been successful in gaining market share from VMware, particularly among medium-sized customers, and sees this as a long-term opportunity. Nutanix’s management is actively working on converting new opportunities and is optimistic about the future, especially with partnerships with major players like Dell, Cisco, and Red Hat.
Additionally, Nutanix has shown initial success with Dell PowerFlex, which is seen as a promising avenue for expanding revenue with large enterprises. Despite some concerns about competition from Red Hat, Nutanix has demonstrated competitive wins in virtualization-focused deals. Although the U.S. Federal business is currently weak, this has already been factored into guidance, and the company continues to strengthen its position with a significant share buyback program. These factors contribute to the positive outlook and the maintained price objective of $93.