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Nutanix plans $500 million credit facility for corporate use

Published 12/11/2024, 06:12 AM
NTNX
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SAN JOSE, CA – Nutanix, Inc. (NASDAQ:NTNX), a leader in cloud software and hyperconverged infrastructure solutions with a market capitalization of $17.14 billion, disclosed its intentions today to secure a new revolving credit facility estimated at $500 million during the quarter ending March 31, 2025.

The pursuit of this financial arrangement signals Nutanix's proactive approach to corporate finance, ensuring that it has the necessary capital resources available for its strategic initiatives. However, the company has not yet entered into binding documentation or received firm commitments for the loans under the new facility, leaving the final details and terms to be solidified in the future.

Nutanix's ability to finalize the credit facility is subject to a variety of factors, including prevailing market conditions and global events that could influence the lending environment. The company has cautioned that there is no guarantee that the agreements will be executed or that the transaction will be completed as described.

With revenue growing at 14.86% and the stock currently trading above its InvestingPro Fair Value, investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks including Nutanix.

In other recent news, Nutanix has reported robust fiscal first-quarter earnings, exceeding revenue expectations and demonstrating substantial growth. The company's revenue reached $591 million, a 16% increase year-over-year, and the Annual Recurring Revenue (ARR) climbed by 18% to $1.966 billion. Nutanix also launched GPT in a Box 2.0 and expanded its AWS partnership, reflecting the company's strategic initiatives.

Following these developments, Piper Sandler and Needham, both financial analyst firms, maintained positive ratings on Nutanix and increased their price targets. Piper Sandler maintained an Overweight rating and raised the target to $83, while Needham kept a Buy rating and lifted its target to $90. These adjustments reflect the firms' confidence in Nutanix's long-term potential and strong operating margin.

Despite facing seasonal challenges in the U.S. Federal business segment, Nutanix anticipates normalization in the second quarter and maintains its full-year revenue guidance at $2.435-$2.465 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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