Nutanix (NTNX) Gains Bullish Initiation of Coverage As Stock Recaptures $75

Nutanix's stock price (NASDAQ: NTNX) is coiling back above $75, with a bullish initiation of coverage indicating what may be to come for NTNX.

KeyBanc initiated coverage of Nutanix with an Overweight rating and a price target of $95, citing the company as having the most positive catalysts relative to its peer group. KeyBanc believes Nutanix is critical for future enterprise cloud migrations and that competitive dynamics are improving the company's position.

Oppenheimer initiated coverage with an ‘Outperform' rating and a price target of $80, highlighting Nutanix's strong position in the HCI market and its potential to outperform competitors like VMware, particularly as demand for AI infrastructure grows.

Through the month of June, NTNX has exhibited a slightly negative trend, retreating 2.3% from highs of $83.36 seen earlier in May. This consolidation follows a robust period in May and early June, where the stock benefited from positive analyst reports and overall market optimism. Despite this recent dip, NTNX remains an outperformer this year, adding 22.86% through the first half of 2025.

Technically, Nutanix appears to be in a relatively strong position. The current price remains above both the 50-day Simple Moving Average (SMA) of $72.82 and the 200-day SMA of $67.84, which suggests ongoing bullish support. The 14-day Relative Strength Index (RSI) stands at 54.59, indicating neutral momentum, meaning the stock is neither overbought nor oversold. This cooling off through June could indeed help set the stock up for another run, if the bulls step in.

The company last reported earnings on May 28, 2025, announcing an EPS of $0.56, which surpassed consensus estimates of $0.47 by a substantial 18.82%.

Looking back to the street for clues, Needham raised its price target to $90, maintaining a ‘Buy' rating, buoyed by Nutanix's impressive revenue growth and gross profit margin. Morgan Stanley also raised its price target to $78, maintaining an ‘Overweight' rating, noting Nutanix's momentum in attracting customers transitioning from VMware.

However, it is crucial to acknowledge the potential risks. Nutanix's stock experienced volatility earlier this year following a mixed earnings report where, despite exceeding earnings expectations, fourth-quarter revenue guidance fell below analyst projections.