top of page
Search

Nutanix (NTNX)

  • Writer: Abacus Research
    Abacus Research
  • Nov 11, 2019
  • 1 min read

Nutanix share price has suffered a large decline due to growth falling from ~40% to 0%. Although the market is currently questioning everything, our conclusion is Nutanix has a very strong position in IT infrastructure and hybrid cloud is a massive opportunity.


  • Revenue growth is at an inflection point. The next couple of quarters are critical in understanding the growth trajectory. Recent improvements give us confidence that underlying growth of ~25% is likely. Hence at current 2.6x 2021 sales, we find it an attractive investment.

  • Business model changes are transitory and not well understood, yet the quality of the business is high, with 80% GMs, 97% retention and an LTV/CAC of 12x.

We believe Nutanix is potentially a strategic asset for a number of large players providing downside protection.


Potential Upside: $47 (+70%)

Sensible Downside: $22 (-20%)


 
 
 

Recent Posts

See All
Axon:

Axon is shifting from selling individual tools to providing an interconnected ecosystem. Hardware like TASERs and cameras now act as "data generators" that feed directly into high-margin software modu

 
 
 
C.H. Robinson

CHRW has been going through significant change, They are retaking market share. The new CEO has transformed the company by bringing in a lean / AI, that has helped CHRW to grow earnings despite strugg

 
 
 
Brookfield (BN):

We initially wrote up BN in Jan 2024, it has increased 70%, so why mention it again? Firstly, we think the fundamentals are as good now as they were 2 yrs ago, with a >15% IRR on offer. BN is not a we

 
 
 

Comments

bottom of page