NTNX
Fresh bull case, same old bottleneck
Rosenblatt’s Blair Abernethy stayed in Nutanix’s corner, reiterating a Buy and hiking the price target to $75 from $60. That’s a pretty loud way of saying, “We still like the story,” even if the company’s hardware supply situation is acting like a grumpy traffic cop.
What’s powering the numbers?
The analyst thinks Nutanix’s software is still doing the heavy lifting. The call points to strong demand for Nutanix Cloud Infrastructure and a business that keeps stacking up logos, retention, and recurring revenue like a very organized collector:
- more than 700 new logos added
- 106% net retention rate
- annual recurring revenue expected around $2.5 billion, up about 15% year over year
That’s the kind of setup bulls love. The twist? Growth may not get too spicy if tight hardware supply keeps hanging around like an uninvited guest at dinner.
Why investors should care
The analyst expects Nutanix to report roughly in line with expectations on revenue and earnings when it posts fiscal fourth-quarter results. Translation: this is less about a huge surprise and more about whether the company can keep proving that its software engine is strong enough to outrun the hardware hiccup.
Big picture: Nutanix still looks like a solid enterprise software story, but the market will be watching whether the next leg of growth is a smooth climb or a slightly annoying staircase.