Bank of America Securities Downgrade Nutanix Inc.(NTNX:NSD) to a Neutral rating

STA Research
by: STA Research

Bank of America Securities downgrades Nutanix Inc. to a Neutral rating and slashes the target price to $22 from $54 on the company’s stock.

Based on the Nutanix Inc stock forecasts from 8 analysts, the average analyst target price for Nutanix Inc is USD 28.38 over the next 12 months. Nutanix Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Nutanix Inc is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Nutanix Inc’s stock price was USD 21.42Nutanix Inc’s stock price has changed by +2.29% over the past week, -18.86% over the past month and -30.84% over the last year.

What we like:

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

 

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