NTNX - Nutanix: It's Hard To Be Too Bullish Ahead Of The Q2 Event

2024-02-23 09:26:51 ET

Summary

• Nutanix has enjoyed a stellar year with the doubling of the stock price and strong alpha generation.
• The company is due to announce Q2 results on the February 28, and we discuss some of the major themes related to the event.
• Forward P/E valuations are not cheap, but perhaps allowances can be made in light of the exemplary medium-term earnings growth on offer.
• We are not enthused with the risk-reward on the charts.

Introduction

The growing predilection towards hybrid multi-cloud architecture, coupled with the thrust of generative AI, has done a world of good for the stock of Nutanix, Inc. ( NTNX ), which is known in the market for its eponymous enterprise cloud platform. Over the past year, the tech-heavy Nasdaq has in itself delivered some exemplary returns of 45%, but what does one say about Nutanix, which has seen its share price double, even as it has outperformed its benchmark by over 2x?...

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