NTNX Nutanix Inc

Guggenheim initiated coverage of enterprise cloud software company Nutanix with a Buy rating and a $100 price target, citing significant upside potential as customers migrate away from VMware. Analyst Howard Ma considers Nutanix the only viable enterprise-scale alternative in the core hyperconverged infrastructure market, valued at more than $12 billion. VMware’s aggressive price increases under its mandatory bundling strategy are accelerating customer migrations to Nutanix. Guggenheim expects Nutanix’s total revenue growth to accelerate to 17% this year, above the 13% consensus estimate, and reach 20% by fiscal 2029. The firm also highlighted growing enterprise adoption of Nutanix Cloud Clusters, driven by high on-premises hardware costs. Longer implementation cycles and future-dated contracts that temporarily delayed on-premises revenue recognition could become tailwinds as those effects reverse. $NTNX

$NTNX If there’s a weakness in the plan, finding it now is better than finding it too late

$NTNX finally closed above its August high on Friday, 74.63 against 74.42, but here's the catch: volume came in about 20% below normal. Adjusted earnings were up 62% last quarter on 16% sales growth, so the story's there. I want to see real buyers show up this week before I trust this breakout.