🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

IBM, Cisco, HPE Could All Bid for Nutanix, Price Likely $27-$30 a Share – Analysts

Published 10/14/2022, 09:05 AM
Updated 10/14/2022, 09:17 AM
© Reuters IBM, Cisco, and HPE Could All Bid for Nutanix, Takeover Price Likely at $27-$30 a Share - Analyst

By Senad Karaahmetovic

Piper Sandler isn’t surprised about media reports that Nutanix (NASDAQ:NTNX) is considering a sale.

Shares of the cloud-computing company are up 20% in pre-open Friday after the WSJ report said Nutanix attracted takeover interest.

“Nutanix has opened governance policies in recent years to be more takeover-friendly, and we believe the management team and board are receptive to a potential takeover,” analysts said in a client note.

The analysts believe that companies like IBM (NYSE:IBM), Cisco (NASDAQ:CSCO), Hewlett Packard Enterprise (NYSE:HPE), or a private equity company, all make sense. As far as the takeover price is concerned, they mentioned the range between $27 and $30 per share.

“We believe Nutanix is an attractive target given the +90% subscription mix / continued subscription transition that supports mid-teens growth, HCI taking share from tier-three arrays, multi-cloud play, S&M changes made by the management team, a favorable competitive environment, +$300M FCF by FY25, and compelling valuation. We see this takeout discussion as helping to create a floor on the stock & would continue to buy here,” Piper Sandler said in a client note.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.