Nutanix (NTNX) is predicted to attract customers away from competitor VMware, now owned by Broadcom (AVGO), according to an analyst who upgraded Nutanix on Wednesday. Raymond James analyst Simon Leopold raised his rating on Nutanix stock to outperform from neutral, explaining that Broadcom’s efforts to enhance growth and performance for VMware have resulted in bundling and unexpectedly high price increases, prompting some customers to explore alternatives like Nutanix. Meanwhile, Dell Technologies (DELL) sold VMware to chipmaker Broadcom last year in a $69 billion deal that closed in November.
Nutanix sells cloud-computing network management software and has recently formed a marketing partnership with Cisco Systems (CSCO). Despite VMware’s potential sales advantages as part of Broadcom, Nutanix stock has increased by 38% in 2024 and is up 169% from a year ago. According to IBD Stock Checkup, Nutanix’s relative strength line has hit new highs, earning it “blue dot” status and positioning it as a potential takeover target. On the stock market today, Nutanix stock rose 2.8% to 67.15 in morning trading.
