Nutanix Inc’s (NTNX) Hyperconverged Infrastructure Market Standing Looks Strong Ahead of FQ4 Print

William Blair Values Nutanix's Exciting Momentum in U.S.


This evening, William Blair analyst Jason Ader is looking for a stellar fiscal fourth-quarter showing from Nutanix Inc (NASDAQ:NTNX) amid recent value-added-reseller (VAR) chatter.

It looks as if adoption is surging for the enterprise infrastructure equipment maker’s software-defined HyperConverged (HCI) solutions, with both new and existing customers flocking to NTNX’s technology. In fact, the analyst notes “several top VARs handily beating their internal forecasts for Nutanix sales.”

Therefore, not only bullish ahead of the print but likewise “increasingly confident in the Nutanix story going into fiscal 2018,” the analyst reiterates an Outperform rating on Nutanix stock without listing a price target. (To watch Ader’s track record, click here)

Ader notes, “We are particularly encouraged by momentum in Nutanix’s U.S. federal business, with one of the company’s largest federal VARs communicating confidence that Nutanix saw unusually strong sales into the federal government in the July quarter.”

Notably, with resounding strength anticipated in federal, “This positive feedback follows a sharp rebound in the April quarter fueled by large deal activity (34 deals over $1 million, with 2 deals over $5 million) and record growth in Global 2000 bookings (which as a percentage of total bookings was 50% higher than in any previous quarter). While the HCI category overall remains red-hot with a slew of solutions from upstart and incumbent vendors, Nutanix continues to lead with its best-of-breed technology and customer support, with customers willing to pay a premium for the simplicity and total cost of ownership advantages of Nutanix’s solutions,” contends Ader, bullish on the company’s “software-driven competitive moat in the $8.5 billion hyperconverged infrastructure market.”

TipRanks analytics exhibit NTNX as a Strong Buy. Based on 9 analysts polled by TipRanks in the last 3 months, 8 rate a Buy on Nutanix stock while 1 maintains a Hold. The 12-month average price target stands at $30.38, marking a nearly 39% upside from where the stock is currently trading.

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