This cloud software company’s shares have been receiving Wall Street attention for the past couple of months: BTIG Research upgraded the shares to ‘Buy’ and Stifel Nicolaus and Goldman Sachs both initiated coverage of the company with a ‘Buy’ rating.
Nutanix, Inc. (NTNX)
From Cabot Growth Investor
Nutanix, Inc. (NTNX) is our new addition tonight. We’ve been following it for a few weeks and think it has all the makings of a big winner—thanks to its great growth story (the leader in hyperconverged infrastructure, which looks like the next big thing when it comes to corporate IT trends), excellent numbers (management expects billings to growth five-fold by 2021!) and powerful chart (a massive breakout and rally in February/March, a reasonable dip and now a push back to new highs).
We can’t say Nutanix is at a great entry point, and the stock is also very volatile (it moves about 4% per day from high to low). Thus, if you want to start with a smaller position, you can. But we’re going to keep it simple—we’ll add a 10% position (10% of the portfolio’s value) in NTNX tomorrow, and we’ll use a loose initial loss limit in the 45 to 46 area. BUY.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, April 18, 2018