Nutanix Inc (NASDAQ:NTNX) stock jumped over 15 percent after hours on Thursday, following a solid sales beat that came in well above analyst estimates.
While the stock just crossed the $20 mark, it still may be attractively valued according to analysts at Credit Suisse. The Swiss bank accurately predicted that the company would outpace analyst estimates in the third quarter.
Despite the sharp increase in shares, Credit Suisse maintains an Outperform rating on the stock and has a $38 price target, indicating that there may be significant upside following this immediate jump.
Nutanix has been aggressively expanding their software business, which has grown to 11 percent of revenues, up from 6.5 percent a year ago. This number is expected to reach as high as 33 percent in the long term according to analysts.
“Nutanix, which went public last year, generated sales growth of 67 percent, with new business coming from companies including Caterpillar, Volkswagen and Sprint. Corporations are flocking to Nutanix’s hybrid technology as they manage the transition to the cloud while also keeping key pieces of their infrastructure in-house,” said CNBC following the release.