Wells Fargo Maintains Equal-Weight on Nutanix, PT Down to $71.

Wells Fargo Maintains Equal-Weight on Nutanix, PT Down to $71.

Wells Fargo has maintained its Equal-Weight rating on Nutanix (NASDAQ:NTNX) while lowering its price target to $71, according to a recent analyst report. The decision comes amidst a mixed reaction to Nutanix's fourth-quarter earnings report, which showed strong revenue growth and strategic collaborations but also faced some headwinds.

Nutanix reported a 19.2% year-over-year revenue growth in its fiscal fourth quarter, surpassing the consensus estimate of 17.6% [1]. The company's operating income margin reached 18.3%, outperforming expectations and coming in 230 basis points above its guidance [1]. Despite these positive metrics, Wells Fargo highlighted higher-than-expected expenses, which contributed to a slight downward revision in its price target.

KeyBanc, another major analyst firm, maintained an Overweight rating on Nutanix with a $95 price target, citing the company's strong performance and strategic initiatives [1]. However, Wells Fargo's more cautious stance reflects a broader market sentiment that has seen Nutanix's stock price fluctuate in recent weeks.

Nutanix's strategic collaboration with Finanz Informatik, a German financial services provider, was also noted in the earnings report. The partnership is seen as a significant win for Nutanix, validating its value proposition in large-scale, mission-critical environments [3].

Looking ahead, Nutanix has provided fiscal year 2026 guidance projecting 15.0% revenue growth and operating income margins of 21.5%, which KeyBanc characterized as "highly conservative" and likely setting up for 200-300 basis points of upside [1].

While Nutanix's Q4 results demonstrated its growing importance in the hybrid cloud ecosystem, Wells Fargo's decision to maintain an Equal-Weight rating reflects a more cautious approach to the company's valuation. Investors should continue to monitor Nutanix's financial performance and strategic initiatives as the company navigates the competitive hybrid cloud market.

References:
[1] https://www.investing.com/news/analyst-ratings/nutanix-stock-maintains-overweight-rating-at-keybanc-on-strong-earnings-93CH-4215005
[2] https://www.ainvest.com/news/nutanix-q4-earnings-blueprint-hybrid-cloud-dominance-2508/
[3] https://www.benzinga.com/markets/earnings/25/08/47373081/nutanix-stock-slides-after-q4-earnings-report