Rosenblatt Securities reiterated a Buy rating on Nutanix and raised its price target from $60 to $75, citing strong demand for Nutanix Cloud Infrastructure software. The analyst expects in-line Q4 results, but projects a cooling of ARR growth next year due to persistent tight hardware supply conditions.
This 8-K filing details Rosenblatt Securities' updated outlook on Nutanix (NTNX) ahead of its fiscal fourth-quarter earnings report. The analyst reiterated a Buy rating and significantly raised the price target from $60 to $75, driven by strong demand for Nutanix's Cloud Infrastructure software and robust Q3 performance. While Q4 results are expected to be broadly in-line, the analyst projects a slowdown in Annual Recurring Revenue (ARR) growth for the next fiscal year, attributing this to persistent tight hardware supply conditions. This presents a short-term opportunity for traders on the positive sentiment from the price target hike, but a long-term risk due to potential growth deceleration if hardware supply issues are not resolved.