Nutanix Stock Is Soaring. Wall Street Likes the Upbeat Outlook.

Analysts are raising price targets on Nutanix.


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Nutanix

stock is rocketing Thursday after the company beat fiscal-fourth-quarter expectations, and provided strong guidance. Analysts are lifting their price targets.



Nutanix

(ticker: NTNX) reported an adjusted quarterly loss of 17 cents a share, topping the consensus estimate for a loss of 38 cents a share, according to analysts surveyed by FactSet. The enterprise cloud-computing company’s revenue of $385.5 million topped the $355.3 million estimate.

Nutanix stock surged 29% to $22.36 Thursday, compared with a 1.4% drop in the



Nasdaq Composite
.

The stock was down 46% so far in 2022, but on Thursday was on pace for its largest percent increase on record and its highest closing price since May 13, according to Dow Jones Market Data.

Looking ahead, Nutanix said that it expects first-quarter revenue to range from $410 million to $415 million, and fiscal 2023 revenue to range from $1.77 billion to $1.78 billion. Those estimates are above Wall Street’s estimates for $371.7 million and $1.64 billion, respectively.

“While we’re aware that the macro backdrop had grown incrementally more challenging for many businesses, in our fourth quarter, we continued to see solid demand for our Nutanix Cloud Platform,” CEO Rajiv Ramaswami said during the company’s conference call after the markets closed on Wednesday.

Needham analyst Mike Cikos maintained his Buy rating on Nutanix stock, and raised his price target to $25 from $20. Nutanix “is seeing strong demand as customers invest in Digital Transformation, Data Center modernization and Hybrid Multi-Cloud initiatives,” Cikos wrote in a research report.

Susquehanna analyst Mehdi Hosseini raised his price target to $30 from $25, and wrote that he was “encouraged with acceleration in [the] ACV billings growth rate.” ACV billings, the sum of the annual contract value for all contracts billed during any given period, was $193.2 billion in the fourth quarter, which was above the consensus estimate for $181.1 billion.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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