Nutanix, Inc. (NASDAQ:NTNX) is one of the most promising cloud stocks according to analysts. Barclays analyst Tim Long downgraded the stock from Overweight to Equal Weight on January 15. He also lowered the firm’s price target for the shares from $64 to $53. The downward revised price target offers a further 26% upside from the current levels.
According to the analyst, the company is in the “middle innings” of its opportunity to gain market share from VMware. The firm’s outlook indicates that, although the company still has potential in the VMware displacement market, growth is slowing, which could limit its ability to sustain the rapid momentum.
Additionally, on January 12, Morgan Stanley analyst Sanjit Singh also downgraded the stock from Overweight to Equal Weight. He reduced the firm’s price target for the shares from $82 to $62. The adjusted price target offers a further 47.6% upside from current levels, which is consistent with the median Wall Street analysts’ upside of 50% based on 17 analysts covering the stock.
In a research note to investors, the analyst acknowledged that the company remains an attractive business, having reached a scale of over $2.5 billion in revenue. However, heading into 2026, the firm believes visibility into the company’s top-line growth is declining, creating short-term uncertainty. Despite this, the analyst pointed out that the firm continues to view Nutanix’s long-term growth prospects positively.
Nutanix, Inc. (NASDAQ:NTNX) provides an enterprise cloud platform across Asia Pacific, Latin America, North America, the Middle East, Europe, and Africa. The company offers Nutanix cloud infrastructure, hyperconverged infrastructure software, Nutanix AHV, flow network security, Nutanix data services for Kubernetes, Nutanix Cloud Clusters, and others.
While we acknowledge the potential of NTNX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
