Nutanix stock falls again after Raymond James downgrades due to 'growing pains'

Shares of Nutanix Inc. are down 1.1% in midday trading Monday after Raymond James analyst Simon Leopold lowered his rating on the stock to market perform from outperform following conversation with the cloud company's management team. "Last week's earnings report left us uncertain regarding several key points and rather than downgrade out of frustration, we opted to dig deeper," he wrote. "Management argues that its issues are not about competition, but we see this as debatable." He estimates that it will take six months to a year for Nutanix to refill its sales pipeline, and he predicts steeper expenses as the company works through its execution issues. Nutanix shares dropped 33% in Friday's session following the company's disappointing earnings report. The stock has lost 22% over the past three months, as the S&P 500 has gained 2.9%.

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