- Reducing target from $29 to $20 and rating from Equal Weight (Bloomberg-sourced), analyst Katy Huberty (Morgan Stanley) projects near-term Nutanix trade closer to firm's modified base case (vs. midpoint between base case and bull case) given market crowding (HPE/SimpliVity, Cisco HyperFlex cited) and removed possibility for new, sizable OEM partners, commodity-generated margin pressure, decelerating OEM growth, less large deals, greater Y/Y DSOs, shifts in U.S. sales force and forthcoming (March 28) lock-up expiry of approximately 84M shares.
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Analyst Richard Kugele (Needham & Company), unmoved on rating and target ($36), considers issues impacting outlook immaterial longer-term. Further spotlights company's reiteration of plan to reach sustained free cash flow by year-end CY 2017.
- Nutanix (NASDAQ:NTNX) $24.66.
- Yesterday (March 2, 2017): Nutanix -15%; Q2 2017 over consensus, outlook off / earnings call transcript