Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Global 2000 Companies Will Be ‘Core Driver’ For Nutanix’s $3B Billings Target, Says KeyBanc Analyst

Courtesy of Benzinga.

Global 2000 Companies Will Be 'Core Driver' For Nutanix's $3B Billings Target, Says KeyBanc Analyst

Nutanix Inc (NASDAQ: NTNX) said it has identified a path toward $3 billion in product and support billings in fiscal 2021 in an analyst day presentation Monday. This represents a growth rate of 40 percent from 2017 and prompted KeyBanc to turn incrementally bullish on the stock.

The Analyst

KeyBanc Capital Markets’ Alex Kurtz maintains an Overweight rating on Nutanix’s stock with a price target lifted from $52 to $61.

The Thesis

The $3-billion billings goal, which is not official guidance, was the “big headline” from Nutanix’s presentation, Kurtz said in a Monday note. 

The cloud platform company’s objective is mostly dependent on generating large deals, and the Global 2000 group will be a “core driver” of the revenue ramp, the analyst said. Nutanix is positioned to target the 2,000 companies, which account for a total addressable market of $75 billion; the cloud sector and systems management add another $15 billion to the TAM, Kurtz said. 

“Nutanix will begin supporting file protocols in the next software release, which will enable sales reps to target traditional NetApp Inc. (NASDAQ: NTAP) and Dell/EMC file environments later this year,” the analyst said. 

The introduction of Nutanix’s “Calm” and “Prism” capabilities, servers and storage IaaS opens up a new opportunity with the introduction of Xi Cloud Services, Kurtz said. 

KeyBanc’s revised price target of $61 implies an 8x EV/F19 revenue multiple, similar to that of competitors Splunk Inc (NASDAQ: SPLK) and Palo Alto Networks Inc (NYSE: PANW) during growth cycles where billings growth rates top 40 percent, the analyst said. 

Price Action

Shares of Nutanix hit a new all-time high of $53.67 Tuesday morning and were up by 2.12 percent at the time of publication. 

Related Links:

Goldman Sachs Adds Nutanix To Conviction List, Says Hardware Revenue Decision Is Misunderstood

KeyBanc Raises Nutanix Price Target As Cloud Computing Company Nets European Contracts

Latest Ratings for NTNX

Date Firm Action From To
Mar 2018 Morgan Stanley Maintains Equal-Weight Equal-Weight
Mar 2018 JP Morgan Maintains Underweight Underweight
Mar 2018 KeyBanc Maintains Overweight Overweight

View More Analyst Ratings for NTNX


View the Latest Analyst Ratings

Posted-In: Alex Kurtz cloud Global 2000 KeyBanc Capital MarketsAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!