Following are the two stocks which have been upgraded by wall street analysts.
Enthusiast Gaming Holdings Inc. (NASDAQ:EGLX) initiation details – Buy at H.C. Wainwright; target $10
H.C. Wainwright initiates EGLX with a Buy and price target of $10. Analyst Scott Buck offered, “Headquartered in Toronto, Canada, the company’s owned and operated digital media platform includes more than 100 gaming related websites and more than 1,000 YouTube channels. This significant portfolio of digital properties is coupled with gaming and live event content creating a flywheel in which the company can monetize its digital assets. As monetization improves, revenue growth and gross margin expansion should serve as a meaningful catalyst in attracting new investors and pushing EGLX shares towards our $10.00 price target.”
Nutanix, Inc. (NASDAQ:NTNX) – target raised to $61 at Needham
Needham raises their NTNX target to $61 from $47. Analyst Jack Andrews noted, “Yesterday we attended NTNX’s first Analyst day in > 2 years, which was highlighted by longawaited details on the financial gains derived from its transition to an ACV-based business. Management disclosed specific metrics on the growing mix of renewal versus new/upsell business that drives most of the results today.
Guidance called for the combination of a burgeoning recurring renewal stream with high retention and continued growth within new/ upsell business to drive a 25% ACV and 20% revenue CAGR through FY25. Renewals have ~80% fewer costs to transact, which should drive margin leverage as they become a larger portion of the mix. Given improved transparency regarding the underlying machinations of trending business mix and unit economics, we are increasing our estimates to move directionally closer to NTNX’s mid-term targets.”
