Goldman Sachs has launched coverage on hybrid cloud provider Nutanix (NTNX.US) with a 'Buy' recommendation and a $95 price target, citing the company's pivotal role in enterprise infrastructure modernization. The investment bank highlighted Nutanix's hyperconverged infrastructure (HCI) platform, which integrates computing, storage, and networking into software-defined stacks to deliver cloud-like services for on-premises environments.

Compared to traditional architectures, Nutanix solutions demonstrate compelling advantages—reducing total cost of ownership by over 40% while accelerating resource provisioning and enabling flexible hybrid deployments. Goldman Sachs projects significant revenue upside stemming from Broadcom's (AVGO.US) acquisition of VMware, anticipating annual recurring revenue gains between $300-$600 million during fiscal years 2025-2029 as customers migrate from VMware's altered pricing and support structures.

Nutanix's expanding alliance ecosystem with Dell (DELL.US), Cisco (CSCO.US), and Pure Storage (PSTG.US) further strengthens its market position. The company's ongoing evolution into a hybrid multi-cloud orchestration platform directly addresses critical enterprise needs including cloud migration, infrastructure automation, and AI workload support.

Recent quarterly performance underscores this momentum: Nutanix's Q3 FY2025 results surpassed expectations with EPS of $0.42 (versus $0.38 consensus) and revenue surging 22% year-over-year to $639 million (exceeding $594.4 million projections). Piper Sandler subsequently raised its target to $88 from $76, applauding consistent growth and robust new customer acquisition. Similarly, KeyBanc initiated coverage with an 'Overweight' rating and $95 target, emphasizing Nutanix's strategic positioning in hybrid multi-cloud environments and double-digit revenue expansion potential.