Nutanix Inc NTNX shares are down after the company reported mixed results due to execution challenges as it focuses on larger enterprise accounts that would position the company for the long term.
John Lucia of JMP Securities reiterated his Market Outperform rating on Nutanix shares, despite lower-than-expected billings and third-quarter guidance, as he believes the company’s decision to move up-market signals its confidence in the enterprise arena.
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Lucia is also encouraged by the increased adoption of Acropolis Hypervisor, which was included on 21 percent of nodes shipped versus 7 percent in the year-ago quarter.
The analyst also pointed to Nutanix's statement that Dell is compensating EMC reps for Dell-Nutanix XC Series sales this month the first time since close of Dell-EMC deal.
That said, Lucia cut his price target by $3 to $35 to reflect slower growth this year.
At last check, shares of Nutanix had fallen 19 percent to $25.20.
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