JP Morgan Maintains Overweight on Nutanix (NTNX) Despite Near-Term Muted Outlook

Nutanix, Inc. (NASDAQ:NTNX) is one of the best tech stocks to buy according to hedge funds. On August 28, JP Morgan maintained its Overweight rating on Nutanix, Inc. (NASDAQ:NTNX) while trimming its price target from $90 to $81. On September 2, the stock was trading at $67.12, which represents a 20.67% implied upside. The firm’s research note comes after Nutanix reported its Q4 Fiscal Year 2025 earnings on August 27. The bank expects the stock to “remain muted” in the near-term.

JP Morgan Maintains Overweight on Nutanix (NTNX) Despite Near-Term Muted Outlook

The company generated revenue of $2.54 billion for fiscal year 2025 and $653.27 million in Q4, a 19.22% year-over-year growth from the same quarter last year. The strong finish to the fiscal year was driven by subscription growth and strong customer acquisition.

More importantly, the company saw a turnaround in margins during the fiscal year. In FY 2025, the company’s net margin stood at 7.42%, a huge improvement from -5.81% in the previous year. The company’s forward P/E ratio stands at a reasonable 29.58x.

While we acknowledge the potential of NTNX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NTNX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Stocks to Invest in for Long Term Growth and 10 Best Growth Stocks to Buy According to Analysts.

Disclosure: None.