Nutanix initiated with a Buy at UBS

UBS analyst Jeff Hickey initiated coverage of Nutanix (NTNX) with a Buy rating and $81 price target The firm sees opportunity for the company to capture $400M from a $5B opportunity from VMware acquisition disruption, supporting its $3.1B annual recurring revenue estimate, above the Street’s $3.0B expectation in fiscal 2027. UBS likes Nutanix’s leading position in hyper-converged infrastructure software, a segment it says is expected to maintain double digit growth over the next several years.