01:00 PM EST, 02/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target to $71 from $47 on a P/S of 7.5x, above its three-year average on good sales execution and a favorable deal pipeline, using our next-12-month sales estimate of $2.3B. We lift our FY 24 EPS view to $1.07 from $0.95 and FY 25's to $1.33 from $1.21. NTNX posted Q2 sales of $565.2M, above consensus by $14.8M, while non-GAAP EPS of $0.46 beat by $0.17. Revenue rose 16.2% Y/Y from solid Subscription revenue growth (+18% Y/Y) as ACV billings outperformed, up 23% Y/Y, from higher-than-anticipated renewals. We note NTNX's commentary around a continued uncertain macro environment, and longer average sales cycles, which likely impacted contract duration of 2.8 years in Q2, lower than Q1. However, these results reflect the firm's strong execution in securing and keeping pace with renewals and expansion deals, as well as maintaining healthy pricing levels in spite of these challenges. Its upbeat guidance and a higher mix of large deals in the pipeline further support our positive view of the business.