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Publication Date: 2026-02-09 11:52:00
Investing.com – Goldman Sachs has reduced its price target on to $60 from $75 while maintaining a Buy rating on the stock. According to InvestingPro data, Nutanix is currently trading at $40.26, nearly 52% below its 52-week high of $83.36, suggesting potential upside even with the reduced target.
The firm cited the broader de-rating in the software sector as a primary reason for the adjustment, while also introducing an M&A multiple to its valuation framework. Despite the price target reduction, Goldman Sachs remains constructive on Nutanix’s outlook.
Goldman Sachs acknowledged potential volatility ahead of Nutanix’s fiscal second-quarter results, scheduled for February 25. The firm believes the stock’s significant underperformance, down 32% since the first-quarter report, already reflects a guidance reset that Goldman views as timing-related. InvestingPro data shows an even steeper decline of 43.77% over the past six months.
The research firm expects Nutanix to deliver fiscal second-quarter results in-line to slightly above consensus estimates. At approximately 10x EV/FCF for fiscal year 2027, Goldman Sachs believes the market is discounting the company’s potential for durable low double-digit growth. This view is supported by InvestingPro data showing a very attractive PEG ratio of 0.14, indicating the stock may be undervalued relative to its expected earnings growth.
Goldman Sachs noted that while the stock may remain volatile in the near term, it sees a more…