Cloud computing software company Nutanix (NASDAQ: NTNX) got a breather on Thursday on bullish comments from an analyst, after months of declining stock price. The stock opened 6.4% in green on Thursday after trading higher during pre-market hours.
Jason Ader of William Blair said in a research note that he believes the stock could be on the verge of an upswing.
“According to multiple VARs (value-added resellers), the pipeline expansion has been supported by aggressive sales hiring at Nutanix and increasing sales coverage,” he said, adding their July business saw a higher number of seven-figure deals.
Adler has an Outperform rating on the stock.
Meanwhile, Jonathan Ruykhaver of Robert. W Baird set a price target of $41 on the stock, which is at a 48% upside from the current trading price. He maintains a Buy rating on NTNX. On the whole, 10 out of 16 analysts covering the stock has a Buy rating, with the 12-month average price target at $38.
In the trailing 12 months, Nutanix stock has declined almost 50% of its value, even as the iShares Expanded Tech-Software (IGV) gained 18.8%.
In May, Nutanix reported third-quarter revenue that fell short of both analysts’ and the company’s predictions, sending its stock plunging 15%. The hybrid cloud infrastructure company also provided outlook, which came below the street expectations.