Enterprise cloud operating system provider Nutanix (NTNX) continues to gain from the strong adoption of its hybrid cloud solutions.
The company dominates the rapidly growing hyper-converged infrastructure (HCI) market. Moreover, market research firm Gartner recognized Nutanix as a 2021 Gartner Peer Insights Customers’ Choice vendor for HCI for the third time.
Notably, Nutanix’s software-defined HCI solutions, which are majorly deployed in large and centralized data centers, support multi-hypervisor and multi-cloud with unified management. Its popular Xi Cloud services are in a strong position to compete with Amazon AWS (AMZN), Microsoft Azure (MSFT), and Google Cloud (GOOGL) in the Infrastructure-as-a-Service (IaaS) market. I am bullish on the company.
Needham analyst Jack Andrews attended Nutanix’s annual user conference this week, which focused on discussing the repatriation of workloads from the cloud, and optimal utilization of hybrid operating models. (See Nutanix stock charts on TipRanks)
The pandemic-induced shift to work-from-home made it necessary for organizations to immediately take their workloads to the cloud. However, now that they have had the time to adjust and focus on their business health, organizations are shifting their focus to infrastructure and operational cost optimization.
This trend has been testified by few surveys conducted by venture capital firm Andreessen Horowitz, which found that companies are indeed saving costs by bringing their workloads back on-premise.
Andrews believes that Nutanix plays an important role in this situation, because its solutions ensure seamless deployment and management of workloads for organizations across hybrid environments.
Moreover, Nutanix recently collaborated with Citrix (CTXS) to jointly provide IT solutions to organizations.
“Although Citrix and Nutanix have partnered in multiple ways in the past, the announcements represent a formal partnership around portfolio alignment and joint-go to market to collectively drive the future of the hybrid workforce and multi-cloud services,” said Andrews.
The analyst reiterated a Buy rating on the stock, with a price target of $64. Wall Street seems to be equally optimistic about Nutanix, with the consensus rating being a Strong Buy, based on eight Buys and one Hold. The average Nutanix price target of $50.67 indicates upside potential of 20.4%.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclosure: At the time of publication, Chandrima Sanyal did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
