25 October 2016 Americas/United States Equity Research IT Hardware Nutanix Inc. (NTNX) Rating OUTPERFORM Price (24-Oct-16,US$) 29.77 INITIATION Target price (US$) 38.00 52-week price range 44.46 - 28.50 Market cap (US$ m) 4,086.62 Disrupting in the right way *Stock ratings are relative to the coverage universe in each ■ Initiate with Outperform and $38 TP: We initiate coverage of Nutanix with analyst's or each team's respective sector. ¹Target price is for 12 months. an Outperform rating and a $38 target price. We believe the company has a [V] = Stock Considered Volatile (see Disclosure Appendix) unique technological advantage that will disrupt the IT infrastructure market, Research Analysts specifically in the form of hyperconvergence. A sizable TAM, an effective Kulbinder Garcha sales motion, and a well-considered business model that relies upon 212 325 4795 software IP should lead to strong and sustained financial performance.
[email protected] ■ Hyperconvergence – A market driven by IT needs: In our view, today's IT Philip Wang budget pressures combined with rapid growth in next-generation applications 212 538 3458 mean that the traditional silos of servers, storage, and networking will need
[email protected] to converge. Combining storage and compute into one and leveraging a William Chu software platform that is highly scalable, the Nutanix hyperconverged system 212 538 4993 enables agile deployment and can reduce the TCO by as much as ~58%.
[email protected] ■ A significant TAM, as much as $32bn, effective sales strategy: We see Syed Talha Saleem multiple drivers growing the hyperconverged TAM.