On Wednesday, Morgan Stanley (NYSE:MS) maintained its Equalweight rating on shares of Nutanix (NASDAQ:NTNX), while increasing the price target to $63 from the previous $58. The firm's analysis indicates that Nutanix could see a revenue growth boost of 2-5% in the coming years, attributed to the potential increased traction for the company following Broadcom (NASDAQ:AVGO)'s acquisition of VMware (NYSE:VMW).
The assessment by Morgan Stanley reflects the feedback from resellers, who have observed a shift in market dynamics that could favor Nutanix. This shift is expected to potentially drive more business to Nutanix, as customers evaluate their options in light of the changes within the industry.
Morgan Stanley's stance remains cautious, as they anticipate a pullback that could affect the revenue opportunity for Nutanix. The firm advises keeping an eye on these key indicators that could impact the company's financial performance and growth trajectory in the near future.
InvestingPro Insights
InvestingPro data highlights Nutanix's (NASDAQ:NTNX) substantial market cap of $15.57 billion, which underlines the company's significant presence in the industry. With a robust revenue growth of 18.12% over the last twelve months as of Q2 2024, Nutanix demonstrates a capacity for expansion, which may align with Morgan Stanley's revenue growth boost projection. The company's impressive gross profit margin of 83.85% in the same period underscores its efficiency in maintaining profitability on its products and services.
Two InvestingPro Tips that are particularly relevant to Morgan Stanley's analysis include the expectation of net income growth this year and the fact that 11 analysts have revised their earnings upwards for the upcoming period. These insights could provide investors with additional confidence in Nutanix's financial outlook, complementing the positive sentiment from Morgan Stanley's increased price target.
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