KeyBanc Capital Markets raised its price target for Nutanix (NASDAQ: NTNX) to $75 from $65 while maintaining an above-average rating, citing an improving growth trajectory for the enterprise cloud software provider.
The firm’s valuation adjustment follows a 79% gain in NTNX shares over the prior six months, with the stock last trading at $67.79. KeyBanc expects the company to meet fiscal 2027 projections and exceed consensus revenue estimates, forecasting a reacceleration from roughly 12% growth in fiscal 2026 to about 14% in fiscal 2027.
Growth is projected to be driven by sustained customer additions, expanded third-party storage platform flexibility, and modest improvements in net revenue retention from higher-value product sales. KeyBanc also highlighted the ongoing migration from VMware as a tailwind, noting that perpetual support for vSphere 8 is set to expire in October 2027, which could accelerate adoption.
Artificial intelligence is viewed as an underappreciated catalyst, with KeyBanc pointing to an AMD partnership expected to contribute in fiscal 2027. The firm stated that these factors should support a re-expansion of Nutanix’s valuation multiple toward historical levels.
InvestingPro data cited in the report shows Nutanix maintaining gross margins near 87% and receiving a general financial health rating of "Great," though the stock is assessed as overvalued relative to its fair value.
Oppenheimer separately raised its price target for Nutanix to $80, also maintaining an Outperform rating. The firm expects fiscal Q4 2026 revenue in the upper range of guidance, between $725 million and $745 million, and anticipates fiscal 2027 revenue guidance above consensus, surpassing $3.20 billion.
Piper Sandler reiterated an above-average rating with a reduced price target of $60, citing supply constraints, while RBC Capital increased its target from $55 to $58 based on solid Q3 results, annual recurring revenue growth, and bookings strength. KeyBanc had previously maintained its $65 target following Q3 results that beat expectations.
