Nutanix price target raised to $83 from $77 at Piper Sandler

Piper Sandler raised the firm’s price target on Nutanix (NTNX) to $83 from $77 and keeps an Overweight rating on the shares. The firm notes shares are pointed higher after hours following Q1 revenue and free cash flow strength, the term-license acceleration, strong net-new adds, Q2 guide above expectations, and FY25 free cash flow guide being slightly raised that gives confidence in the FY27 targets potentially occurring earlier. However, the lead-metrics all missed, which will leave concerns about sustainable growth and level of conservatism. Despite the slight weakness in lead-metrics that can be volatile quarter-over-quarter, this was a non-narrative changing quarter, and Piper remains confident in Nutanix’s opportunities ahead, ability to execute, gain share, and drive higher free cash flow.