Nutanix: Goldman Sachs initiates Buy coverage with $95 price target.

Nutanix: Goldman Sachs initiates Buy coverage with $95 price target.

Title: Goldman Sachs Initiates Buy Coverage on Nutanix with $95 Price Target

Goldman Sachs has initiated coverage on Nutanix (NASDAQ:NTNX) with a Buy rating and a $95 price target, according to a recent report. The company, currently trading at $72.46, has shown strong momentum with a 40% return over the past year. Goldman Sachs views Nutanix as a key modernization play for enterprises transitioning from legacy infrastructure, highlighting its Hyperconverged Infrastructure (HCI) platform that delivers cloud-like operations to on-premises environments by unifying compute, storage, and networking into a software-defined stack [1].

The investment bank notes that Nutanix’s solutions offer more than 40% total cost of ownership savings, faster provisioning, and hybrid deployment flexibility compared to traditional infrastructure approaches. Goldman Sachs identifies a significant opportunity for Nutanix to capture $300-$600 million in annual recurring revenue over four years (FY25-FY29) from VMware customer displacement following Broadcom’s acquisition, as pricing, support, and packaging changes prompt customers to explore alternatives [1].

In addition, Nutanix’s expanding partner ecosystem with Dell (NYSE:DELL), Cisco (NASDAQ:CSCO), and Pure Storage (NYSE:PSTG), along with its evolution into a hybrid multi-cloud orchestration platform addressing key IT priorities including cloud mobility, infrastructure automation, and AI enablement, further supports the company’s strategic position in the market [1].

Recent earnings reports have also been positive for Nutanix. The company reported its third-quarter fiscal year 2025 earnings, exceeding analysts’ expectations with an earnings per share of $0.42 compared to the forecasted $0.38. The company also surpassed revenue projections, posting $639 million against an anticipated $594.44 million, marking a 22% year-over-year increase [1].

Piper Sandler updated its outlook on Nutanix, raising the price target to $88 from $76, citing stable growth and strong momentum in new customer acquisitions. KeyBanc initiated coverage on Nutanix with an overweight rating and a $95 price target, highlighting the company’s strategic position in hybrid multi-cloud environments and projecting mid-teens revenue growth [1].

Nutanix continues to strengthen its partnerships with major companies like Cisco and Dell, contributing to its competitive positioning. These developments reflect Nutanix’s ongoing efforts to capitalize on market opportunities and enhance its financial performance [1].

References

[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-initiates-nutanix-stock-with-buy-rating-on-cloud-modernization-potential-93CH-4134877