2024-07-17 00:43:43 ET
Summary
- Nutanix develops data management software using hyperconverged infrastructure and data virtualization technologies.
- The HCI market was valued at $9.6 billion in 2023, projected to reach $61.5 billion by 2030. Nutanix expected to deliver positive EBITDA in 2024.
- Nutanix is positioned as a leader in the hyperconverged infrastructure market, with a fair stock value of $58/share. Status is Hold.
Summary:
- Nutanix is a company that develops data management software based on the technologies of hyperconverged infrastructure ((HCI)) and data virtualization.
- Nutanix is currently closer to the status of an established business, according to Gartner.
- The HCI market was valued at $9.6 billion in 2023 and the virtualization market totaled $3.9 billion in 2023. By 2030, these markets are projected to be worth $61.5 billion and $10.8 billion, respectively.
- We expect the company to continue delivering a positive EBITDA. Full-year EBITDA will turn positive for the first time in 2024, totaling $181 mln, and is set to rise to $244 mln (+34% y/y) in 2025.
- Despite that Nutanix is showing steady EBITDA and customer base growth, upcoming positive for the company is already in its price, so we can't give it a Buy status. We put the fair value of Nutanix stock at $58/share. The status is HOLD.
Investment thesis:
Read the full article on Seeking Alpha
For further details see:
Nutanix: A Fairly Priced Leader In Hyperconverged Infrastructure