UBS raised its price target on Nutanix Inc. (NASDAQ: NTNX) to $80 from $62, maintaining a buy rating as demand accelerates from enterprise customers migrating away from VMware infrastructure. The upgrade follows a broader analyst upgrade cycle, with Oppenheimer and KeyBanc also lifting their targets to $80 and $75 respectively, while Piper Sandler trimmed its target to $60.
The valuation adjustment reflects expectations that Nutanix will benefit from sustained migration activity, with UBS estimating the company trades at roughly 18 times its projected 2027 free cash flow. Analysts also noted a 40%-50% year-over-year pipeline expansion, alongside stable hardware availability and pricing conditions that no longer appear to pose a bottleneck.
UBS projects Nutanix could exceed its fiscal Q4 2026 revenue guidance by 1%-2%, implying growth of about 16% versus the prior year. For fiscal 2027, the firm anticipates total revenue growth of approximately 13%, with Oppenheimer forecasting guidance above consensus at over $3.2 billion. KeyBanc highlighted accelerating total contract value bookings growth above 20% in the third quarter, while Piper Sandler emphasized strong term-license sales despite supply concerns.
Nutanix shares were down 1.42% at $66.68 in late trading, bringing year-to-date gains to 29% and a six-month return of 73%. The stock has surged 43% since the end of May, trading at a price-to-earnings ratio of 70.18.
