Baird upgrades nCino stock rating to Outperform, raises price target to $38

Published 14/07/2025, 07:50
Baird upgrades nCino stock rating to Outperform, raises price target to $38

Investing.com - Baird upgraded nCino Inc. (NASDAQ:NCNO) from Neutral to Outperform and raised its price target to $38.00 from $30.00. According to InvestingPro data, the stock currently trades at $28.82, with analysts’ targets ranging from $27 to $35.

The upgrade comes as Baird sees parallels to its historically successful stock calls, citing improving macroeconomic conditions and spending environment that could benefit nCino’s business prospects.

Baird identified several growth drivers for nCino, including mechanical growth accelerants, go-to-market catalysts, and momentum in new products, all while market expectations have reset lower.

The firm believes this combination creates "the best estimate upside argument in years" for nCino, with Baird increasing its estimates for the company, though not quite to levels consistent with nCino’s communicated goals.

Baird noted that if nCino achieves its full potential, including its "Rule of 40+" objective, the stock could see significant re-rating with a potential upside case approaching $50 per share.

In other recent news, nCino Inc. has been the focus of several analyst updates and strategic discussions. Citizens JMP raised its price target for nCino to $35, citing confidence in the company’s AI strategy and new pricing approach, which is expected to support a positive earnings trajectory for fiscal year 2026. Meanwhile, JPMorgan initiated coverage with a neutral rating and a $30 price target, noting nCino’s focus on improving profit margins through a shift in product mix and AI tools. Truist Securities maintained a Hold rating with a $27 price target, highlighting discussions with nCino’s management about AI adoption and financial performance improvements expected in the second half of 2027.

KeyBanc Capital Markets continues to hold a Sector Weight rating on nCino, emphasizing the need for more evidence of strategic growth initiatives before considering a rating change. They expressed improved confidence in the company’s AI strategy and operating margins after recent meetings with executives. Despite mixed reactions to nCino’s new pricing model at the Digital Banking 2025 conference, KeyBanc maintains a neutral stance on the company. Analysts noted that nCino’s relationship with Salesforce (NYSE:CRM) remains significant, but the increasing use of AWS could enhance subscription gross margins. Overall, these developments reflect a period of strategic adjustments and analyst evaluations for nCino.

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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