Nutanix stock sinks after Morgan Stanley downgrade

Shares of Nutanix Inc. are off 5% in Tuesday morning trading after Morgan Stanley analyst Katy Huberty downgraded the stock to equal-weight from overweight. "Weak results from storage peers suggest a market slowdown and recent channel checks highlight increasing competition," she wrote. Her channel checks suggest that Dell Technologies Inc. "is becoming very competitive" with Nutanix in hyperconverged infrastructure. "We remain positive on Nutanix's technology portfolio but now think a turnaround will take longer than the two to three quarters assumed by investors," she wrote. Huberty lowered her price target to $37 from $53. Shares have fallen 20% so far this year, as the S&P 500 has risen 13%.

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