Nutanix Inc. ( NASDAQ: NTNX ) could see $31-$32/share in a potential takeout, most likely from a private equity firm, a Needham analyst wrote after a report that the cloud company was exploring a potential sale. Nutanix surged 25% on the news on Friday.
A Nutanix ( NTNX ) takeover for $31-$32 would be a "fair" offer, Needham analyst Mike Cikos wrote in a Monday note, where he raised his price target on NTNX to $31 from $25. The $31-$32 deal is based a using a low-to-mid 20's multiple on management's FY25 free cash flow target of at least $300 million.
"We believe the exploration of sale sets a minimum value for the shares," Cikos, who has a buy rating on NTNTX, wrote. "In our view $31-$32 would represent a fair offer, but could skew higher depending on strategic buyers' interest."
Needham's Cikos see private equity as the most likely acquire and sees Bain in the lead position given the PE firm invested $750 million in the Nutanix ( NTNX ) in August 2020.
On Friday a Piper Sandler estimated that Nutantix ( NTNX ) may see $27-$30/share in a potential sale.
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Nutanix may be worth $31-$32/share in a takeover - analyst