3 New Strong Buy Ratings from Top-Rated Analysts: 12/3/2024

Today’s Strong Buys all have A (Strong Buy) or B (Buy) Zen Ratings, in addition to support from top-rated Wall Street analysts. See why Nutanix (NTNX), Axis Capital (AXS), and Semtech (SMTC) are our top watches today. Gain access to dozens of alerts like this per week 👉👉 Try WallStreetZen Premium

1 - Nutanix Inc. (NASDAQ: NTNX) 

Zen Rating: A (Strong Buy)

Analyst/Firm: James Fish / Piper Sandler

Analyst ranking:  Top 18% / average return +6.81% / win rate 54% 

Price at writing: $65.28 — see latest price here

1-year price target: $83.00 

• Maintaining a Strong Buy rating, Piper Sandler's James Fish raised their price target on Nutanix (NASDAQ: NTNX) by 7.8% from $77 to $83 on 11/27.
• Nutanix reported earnings.
• Noting that "lead metrics all missed in the quarter, potentially giving rise to concerns about sustainable growth and level of conservatism," Fish argued that "in spite of the slight weakness in lead metrics (which can be volatile Q/Q), this was a non-narrative changing quarter."
• The analyst attributed the stock's post-print gain to the quarter's "revenue and free cash flow strength, the term-license acceleration, strong net-new adds, management guiding Q2 above expectations, and the FY 2025 free cash flow guide being slightly raised, indicating that Nutanix's FY 2027 targets could be reached earlier."
• Overall, Fish told readers, Piper Sandler remains confident in Nutanix's opportunities ahead, as well as its ability to execute, gain share, and drive higher free cash flow.

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2 - Axis Capital Holdings Ltd. (NYSE: AXS) 

Zen Rating: A (Strong Buy) 

Analyst/Firm: Andrew Kligerman / TD Cowen

Analyst ranking: Top 11% / average return +18.08% / win rate 61% 

Price at writing: $93.04 — see latest price here

1-year price target: $127.00 

• Maintaining a Strong Buy rating, TD Cowen's Andrew Kligerman raised their price target on Axis Capital Holdings (NYSE: AXS) by 7.6% from $118 to $127 on 11/27.
• Kligerman met with Axis Capital Holdings' management, and their takeaways catalyzed their price target hike. Topics discussed during the meeting, according to the analyst, included:
• Management's reiteration of its confidence in its underwriting and reserve strength.
• The company's new "centralized CUO" underwriting review process.
• Revised long-term incentive compensation.
• Will AXS see 36% upside or higher in the coming year?

3 - Semtech Corp. (NASDAQ: SMTC) 

Zen Rating: B (Buy)

Analyst/Firm: Craig Kennison / B. Riley Securities

Analyst ranking: Top 21% / average return +4.89% / win rate 51% 

Price at writing: $64.04 — see latest price here

1-year price target: $85.00 

• Maintaining a Strong Buy rating, B. Riley Securities's Craig Kennison raised their price target on Semtech (NASDAQ: SMTC) by 39.3% from $61 to $85 on 11/26.
• Semtech reported earnings.
• Kennison summed up by saying that the quarter solidly beat consensus and management's Q4 guidance upside was even more significant.
• Looking ahead, the analyst attributed their price target hike to higher estimates and "growing execution confidence," calling Semtech "an increasingly well-diversified AI growth play."
• Will SMTC see over 30% upside in the coming year? Ask the pros.

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