Nutanix and Pure Storage are worth holding, while Rubrik is discouraged due to its high valuation.

Zhitong Finance APP reported that Oppenheimer & Co. initiated coverage on $Nutanix (NTNX.US)$ 、 $Pure Storage (PSTG.US)$ and $Rubrik (RBRK.US)$ on Monday.

Oppenheimer initiated coverage on Nutanix, which provides enterprise cloud platforms, assigning it an “Outperform” rating with a price target of $90.

The bank’s analysts noted: “Our bullish view is primarily based on three core judgments. First, as the industry trend towards hyper-converged infrastructure (HCI) accelerates the transformation of enterprise IT architecture, Nutanix will directly benefit. According to available data, HCI is a technological form that software-defines and integrates the traditional ‘server + storage + network’ three-tier architecture, and Nutanix, as a pioneer and key player in this field, holds a central competitive position during the industry transition.”

Second, as VMware’s continuous price hikes have led to growing customer resistance to renewals, Nutanix is well-positioned to seize the opportunity for incremental market share substitution. Third, the company has the core capability to leverage the surge in unstructured data demand to build and deliver AI applications, providing strong support for its business expansion in the artificial intelligence era.”

The analysts pointed out that although there has been a recent slowdown in U.S. federal government business and the timeline for expanding standalone…