Nutanix continued its October run on Wednesday, with NTNX stock now up some 48% in 2023. Analysts have noted Nutanix stock gains vs. rival VMware, which soon will be part of Broadcom's growing software business.
On the stock market today, NTNX stock rose 6.3% to close at 38.92. Nutanix sells cloud-computing network management software.
While no analysts upgraded Nutanix stock on Wednesday, Nutanix Chief Executive Rajiv Ramaswami commented on Broadcom's pending acquisition of VMware in an interview with an industry trade publication.
Ramaswami said VMware customers could be negatively impacted by changes Broadcom will make at Nutanix. The deal could close this month.
According to a recent Bank of America report, Nutanix has already been taking share from VMware, formerly part of Dell Technologies.
NTNX stock has advanced 48% in 2023, with about 13% of the gain coming in October. Nutanix holds an entry point of 33.73 and trades above a 5% buy zone.
NTNX Stock Buyback
Nutanix hosted an analyst day in late September where the company discussed market opportunities.
"Management is focused on execution and feels it can gain share from the acquisition of VMware by Broadcom," said BofA analyst Wamsi Mohan in a report. "NTNX is seeing interest from both large and small existing VMware customers."
While VMware could have sales synergies as part of Broadcom, Nutanix recently forged a marketing partnership with Cisco Systems, which could bode well for NTNX stock.
Also at the analyst day, Nutanix upped targets for some financial metrics from fiscal 2025 to fiscal 2027, including annual contract value (ACV) billing.
The Nutanix board of directors recently authorized a buyback program of up to $350 million.
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