Nutanix's (NTNX) solid finish to the fiscal year and strength in the core platform, including cloud native and artificial intelligence offerings, continue to build acceleration heading into fiscal 2027, RBC Capital Markets said in a Thursday note.
The investment firm said external storage and Nutanix Cloud Clusters saw a strong uptick in fiscal Q4 and are expected to grow faster than the overall business in fiscal 2027 along with cloud-native offerings.
RBC said partnerships continue to track well and should be a good growth driver this fiscal year. The firm noted that Nutanix is in limited availability with NetApp (NTAP), with the partnership resulting in multiple seven-figure deals in Q4.
Management expects supply-chain constraints to continue in fiscal 2027, with a moderately higher percentage of orders carrying future start dates than in fiscal 2026, according to the note.
RBC Capital Markets maintained its outperform rating on Nutanix and raised its price target to $90 from $84.
Shares of the company were 6.4% higher in Thursday trading.
Price: $69.56, Change: $+4.17, Percent Change: +6.37%