Nutanix Climbs on Analyst Upgrade to Buy

▤ Summary

Shares of Nutanix (NTNX) - Get Report climbed 5.39% to $36.34 Monday after a Jefferies analyst upgraded the enterprise cloud platform company to buy from hold. Analyst John DiFucci, who kept his price target of $42, said in a research note to investors that "potential rewards outweigh the risks at current valuation levels." "We still believe the core products are extremely sticky and will continue to see footprint expansion within current customers,though some risks like the transition to term and macro competition remain," he wrote. DiFucci said Nutanixs stock dropped due to guidance issued during the earnings call after the close on Feb. 28 that included the revenue forecast for next quarter that was $50 million below Wall Streets expectations. Management blamed its problems largely on not enough spending on lead generation and a difficult environment for hiring sales reps, but DiFucci noted that these problems have been addressed and that the pipeline should build into the fourth quarter, leaving the company in a good position to enter 2020.

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