Here’s Why Nutanix Inc (NTNX) Investors Are Walking on Air Today


Nutanix Inc (NASDAQ:NTNX) sent investors flying to buy the tech stock today, gaining 11% after the enterprise infrastructure equipment maker revealed the exciting news: its Enterprise Cloud Platform software is now certified to run Cloudera Enterprise workloads via the Cloudera Certified Technology Program.

Through this certification, joint customers can reduce management complexity and derive more value by deploying and managing their Cloudera analytics workloads on the market’s leading hyperconverged software platform. IT leaders can now run intensive big data jobs in their own private cloud datacenter, adding a new level of flexibility to their IT infrastructure without sacrificing the simplicity and scalability typically associated with public cloud services.

“CSC® is the world’s leading provider of business, legal, tax, and digital brand services to companies around the globe. Partnering with Cloudera and Nutanix, CSC successfully shaped the architecture certification process, utilizing the big data processing power of Cloudera CDH and Hadoop on the Nutanix platform,” says Shawn Dutton, director of Systems Engineering for CSC.

For big data deployments, choosing the right hardware and software is critical to success but often challenging for IT teams balancing ambitious corporate goals with smaller budgets and fewer resources. Joint customers can now run Cloudera workloads on an on-premises, elastic, software-driven infrastructure that can scale on-demand, one node at a time. And because Cloudera workloads can run on the same shared infrastructure as other workloads, IT teams can reduce costs and focus their attention on strategic projects, rather than managing multiple silos of underutilized infrastructure.

“Today’s IT teams have to ensure their private cloud infrastructure delivers the necessary scalability and performance to handle the newer generation of mode 2 applications,” said Philippe Marinier, vice president, Business Development at Cloudera. “By certifying the Nutanix Enterprise Cloud Platform, we’re empowering our customers to essentially make their infrastructure invisible, allowing them to focus on extracting value from their valuable business data using Cloudera Enterprise.”

“Enterprises are rejecting infrastructure options that do not provide cloud-like operating models, and that are incapable of supporting all workloads, including the most demanding big data services,” said Venugopal Pai, vice president of alliances and business development, Nutanix. “By bringing advanced cloud-like infrastructure to run Cloudera big data projects, joint Nutanix and Cloudera customers can transform from traditional analytics and infrastructure environments to a modernized big data application environment delivered on an enterprise cloud fabric – all via one seamless architecture.”

On the ratings front, Nutanix has been the subject of a number of recent research reports. In a report released today, William Blair analyst Jason Ader maintained a Buy rating on NTNX. Separately, on September 28, Morgan Stanley’s Kathryn Huberty maintained a Hold rating on the stock and has a price target of $22.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Ader and Kathryn Huberty have a yearly average return of 8.3% and 11.3% respectively. Ader has a success rate of 63% and is ranked #842 out of 4693 analysts, while Huberty has a success rate of 60% and is ranked #490.

Sentiment on the street is mostly bullish on NTNX stock. Out of 13 analysts who cover the stock, 10 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $32.11, which implies an upside of 33% from current levels.

Nutanix provides enterprise virtualization and storage solutions. It specializes in cloud operating system that converges traditional silos of server, virtualization, storage, and networking into one integrated solution and unifies private and public cloud into a single software fabric. Its products are offered through the Acropolis and Prism brands. It operates through the following geographical segments: United States; Europe, the Middle East and Africa; Asia-Pacific; and Other Americas.