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JPMorgan downgrades Nutanix to Neutral, signaling limited near-term upside amid cloud sector pressures.

Analyst Insights
10 Apr 2026
24/7 Wall Street
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Bearish
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JPMorgan downgraded Nutanix stock from Overweight to Neutral with a price target of $44, reflecting concerns that the cloud infrastructure rally has limited near-term upside for software players like Nutanix. Despite Nutanix beating earnings estimates and growing annual recurring revenue, competitive pressures from rivals and a shift in investor focus toward AI-driven hardware and semiconductors weigh on the stock. Nutanix shares have declined 29% year-to-date and 44% over the past year, underperforming hardware peers benefiting from AI spending. The Neutral rating suggests cautious optimism, advising long-term investors to watch for further valuation drops before buying.

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