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Fly News Breaks for February 27, 2020
Feb 27, 2020 | 07:20 EDT
Wells Fargo analyst Aaron Rakers lowered the firm's price target on Nutanix to $33 from $38 and keeps an Equal Weight rating on the shares. The analyst notes that the company delivered what he would consider in-line Q2 results, but reduced 2020 Software + Support TCV revenue and billings guide to reflect a $25M-$30M incremental billings impact from a faster subscription model transition and an implied $35M-$40M billings guide reduction via increased demand caution over potential COVID-19 impact. While Rakes expect Nutanix shares to come under pressure given the reduced guide, he would consider a 20%-plus pull-back to be "potentially overdone" for longer-term patient investors.