Nutanix Remains 'Top Player,' Analyst Raises Estimates Ahead Of Earnings

Analysts at Bank of America maintained a bullish stance on Nutanix Inc NTNX heading into the company's earnings report on Thursday. The firm's Wamsi Mohan maintains a Buy rating on Nutanix's stock with an unchanged $27 price target after conducting proprietary checks.

Nutanix continues to benefit from the industry's adoption of HyperConverged (HCI) technology along which boasts competitive advantages such as its own virtualization software, Mohan stated in a report. In addition, the analyst's value-added-reseller survey found that 34 percent of respondents noted a shift to HCI solutions, which marks an increase from 28 percent in the last survey. Overall, the company saw increases in favorable responses in each of the past seven quarterly surveys.

An industry expert also noted: 1) Nutanix boasts a strong pipeline, 2) the company also holds a competitive advantage from Acropolis, and 3) the company is seeing market share gains at the expense of SimpliVity.

Over the longer term, the company will benefit from increasing its feature set which could expand automation and ease of deployment along with a disaster recovery service, the analyst added.

Mohan is modeling Nutanix to now report revenue of $220 million (up from a prior estimate of $218 million) and $1.13 billion for the full year (up from $1.10 billion).

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