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Strong Buy Stocks from Top Wall Street Analysts
Latest stocks with a Strong Buy rating from the top performing 25% of analysts tracked by WallStreetZen

Analyst / FirmCompanyPriceRatingPrice TargetUpside/DownsideDate
Thomas Blakey
KeyBanc
Top 14%
87
Nutanix IncNTNX
$63.16Strong Buy$69.00+9.25%
a day ago
Analyst Ranking
Top 14%
#597 out of 4484 analysts
Average Return
+7.47%
Win Rate
57%55 out of 97
Risk vs Reward
Poor
Good

Analyst Color

KeyBanc's Thomas Blakey raised their price target on Nutanix (NASDAQ: NTNX) by 1.5% from $68 to $69 on 2024/02/29. The analyst maintained their Strong Buy rating on the stock.

Given Nutanix's beat and raise Q2 2024 print, released on 2024/02/28, Blakey nudged up their estimates.

The analyst said the quarter was consistent with forecasts, noting that management highlighted growing contract size as evidence of its solid fundamentals.

Earnings Report

For Q2 2024, Nutanix reported:

  • EPS of $0.46, which beat the Zacks Consensus Estimate by 58.62% and, by 283.3%, Q2 2023’s $0.12.
  • Revenue of $565.2M, which beat the Zacks Consensus Estimate by 2.43% and, by 16%, Q2 2023’s $486.5M.
  • ACV (Annual Contract Value) billings of $329.5M, up 23% Y/Y.
  • Gross margin of 87.3%, up 250 bps Y/Y.
  • Operating margin of 21.9%

Management guided:

For Q3 2024:

  • Revenue of $510M to $520M.
  • ACV billings of $265M to $275M.
  • Gross margin of 85%.
  • Operating margin of 7.5% to 8.5%.

For FY 2024:

  • Revenue of $2.12B to $2.15B.
  • ACV billings of $1.09B to $1.11B.
  • Gross margin of 85% to 86%.
  • Operating margin of 12.5% to 13.5%.

President & CEO Rajiv Ramaswami commented: “Our disciplined execution enabled us to deliver a solid Q2 financial performance against an uncertain, but stable macro backdrop.

“We continue to remain focused on being a long-term strategic and innovative partner to our customers as they look to operate in a hybrid multi-cloud world.”

CFO Rukmini Sivaraman added, “Our Q2 results demonstrated a good balance of top and bottom line performance with 26% Y/Y ARR growth and strong free cash flow generation.

“We also achieved GAAP operating profitability for the first time, reflecting the progress we’ve made in driving operating leverage in our model and optimizing the difference between our GAAP and non-GAAP results.”

Philippe Houchois
Jefferies
Top 19%
82
Tesla IncTSLA
$800.00Strong Buy$850.00+6.25%
2 days ago

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