Oppenheimer Thinks Nutanix Inc’s Stock is Going to Recover

By Carrie Williams

Oppenheimer analyst Ittai Kidron reiterated a Buy rating on Nutanix Inc (NASDAQ: NTNX) today and set a price target of $34. The company’s shares closed yesterday at $17.57, close to its 52-week low of $14.38.

Kidron wrote:

“Nutanix reported a strong April quarter ahead of expectations, with equally encouraging sales guidance despite persistent gross margin challenges due to DRAM pricing. Positives include a quick refocusing of sales execution, North America improvement, expanding OEM opportunities/software contribution, and encouraging large-deal activity. GM was also better than expected, showing some positive effects of Nutanix’s pricing efforts. Overall, we come away with increased confidence in Nutanix’s long-term growth prospects and its ability to quickly adjust to market dynamics. While modeling ongoing margin headwinds, we see eventual easing as a source of both top- and bottom-line upside. Maintain Outperform and $34 PT.”

According to TipRanks.com, Kidron is a 4-star analyst with an average return of 2.8% and a 52.9% success rate. Kidron covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Advanced Micro Devices, and Riverbed Technology.

Currently, the analyst consensus on Nutanix Inc is Moderate Buy and the average price target is $31.43, representing a 78.9% upside.

In a report issued on May 23, Maxim Group also reiterated a Buy rating on the stock with a $41 price target.

The company has a one year high of $46.78 and a one year low of $14.38. Currently, Nutanix Inc has an average volume of 2.26M.

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Nutanix, Inc. engages in enterprise virtualization and storage solutions. It operates through the following geographic segments: U.S.; Europe, the Middle East and Africa; Asia-Pacific; and Other Americas. It offers infrastructure management, server virtualization, enterprise applications, virtual desktop infrastructure, cloud development, data protection, and unified communication services. It provides its products under the Prism and Acropolis trademarks. The company was founded by Dheeraj Pandey, Ajeet Singh, and Mohit Aron in 2009 and is headquartered in San Jose, CA.