Why Did Analysts Raise Price Targets For Nutanix After Q4 Performance?

Nutanix, Inc NTNX said fiscal fourth-quarter revenue decreased 1% year-over-year to $385.5 million, which beat average analyst estimates. The company reported a quarterly adjusted net loss of 17 cents per share, which beat average analyst estimates.

Barclays analyst Tim Long maintained an Overweight and raised the price target from $22 to $25. Investors should well receive better Q4 and more robust forward guidance. 

More vital renewals and better new ACVs are driving the upside. Long thinks better competitive positioning is taking hold. 

RBC Capital analyst Matthew Hedberg maintained an Outperform and raised the price target from $21 to $24. The quarter and outlook were much better than expected following last quarter's challenges around the supply chain and sales attrition. 

While difficulties remain, Hedberg likes the step in the right direction and sees many positives from the quarter. These include renewals that continue to track ahead of expectations, improvements in sales attrition, traction from the new product portfolio, and a better FY23 outlook. 

Wells Fargo analyst reiterated Equalweight and the $20 price target given increased uncertainty around sales force attrition and supply chain shortages. 

Nutanix reported upbeat Q4 results and forward guidance driven by renewals and new business. The company reiterated its expectation of becoming sustainably FCF positive with renewal-driven visibility and expense management. 

The analyst thinks investors will also positively view the company's commentary around sales force attrition and a stabilizing supply chain. 

Needham analyst Mike Cikos maintained a Buy and raised the price target from $20 to $25. Nutanix delivered strong results in Q4, with guidance well ahead of expectations for Q1 and FY23. 

The company is seeing strong demand as customers invest in Digital Transformation, Data Center modernization, and Hybrid Multi-Cloud initiatives. Notably, the Renewals team is executing at a high level, which he views as the linchpin for Nutanix delivering against its reiterated FY25 FCF target. 

Price Action: NTNX shares traded higher by 28.7% at $22.25 on the last check Thursday.

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