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Research Alert: CFRA Maintains Hold Rating On Shares Of Nutanix Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our target price to $53, from $45, on a forward P/E of 24x our FY 27 EPS projection of $2.19, below its three-year average. We raise our FY 26 EPS forecast to $1.93 from $1.84, and raise our FY 27 EPS estimate to $2.19 from $2.15. NTNX reported solid Q3 results, with revenue of $703M fueled by over-20% TCV bookings growth, though supply chain headwinds persist. ARR grew 15% Y/Y to $2.435B. While hardware lead times are starting to normalize for some vendors, others are extending as long as six months, reducing revenue conversion visibility in the short term. That said, we believe underlying demand remains healthy, and we note traction with external storage solutions as customers increasingly book ahead to navigate hardware shortages, a partial offset to revenue pressures. Net dollar retention declined 100 bps from 107% in Q2, impacted by delayed revenue recognition due to the server supply constraints. Margins outperformed as non-GAAP operating margin rose 80 bps Y/Y.

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