Benzinga | Jan 19, 2022 06:23AM EST

Here's Why KeyBanc Sees 39% Upside In Nutanix

* KeyBanc analyst Thomas Blakey initiated coverage of Nutanix Inc (NASDAQ:NTNX) with an Overweight rating and a $39 price target, suggesting an upside of 38.74%.

* The recent acceleration, new product cross-sell, and go-to-market partnerships have influenced his above-Street revenue and ACV billings outlook.

* Blakey further notes that he sees potential rerating with about 50% of revenue from subs by FY24 and ramp in free cash flows that offer further upside.

* Nutanix provides native, hybrid cloud capabilities for businesses. The company offers Enterprise Cloud Platform to businesses for web-scale engineering and consumer-grade design, virtualization, and storage into a resilient and software-defined solution.

* Price Action: NTNX shares traded higher by 3.17% at $29.00 in the premarket session on the last check Wednesday.