Nutanix price target raised to $46 from $45 at KeyBanc

KeyBanc analyst Thomas Blakey raised the firm’s price target on Nutanix to $46 from $45 and keeps an Overweight rating on the shares post Analyst Day in NYC, where the company provided an updated financial outlook through FY27 that included many metrics being increased for FY25 above consensus and the firm’s KBCM estimates. ARR was guided in line with KeyBanc’s estimate and slightly below the Street for FY25 possibly due to contract duration coming in below Street estimates, and the company outlined ARR reaching $3.1B-$3.3B by FY27, or 20% CAGR from FY23 $1.6B. Near-term, investor concerns about deceleration in FY24 and an acceleration into FY25 were addressed, in the firm’s view, similar to last quarter’s conference call with some “pull in” to FY23 in terms of co-termination and a smaller base to grow off of in FY24 into FY25, which has a larger “amount of available” to renew deals according to management.