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On Thursday, BofA Securities analyst Adam Bergere adjusted the price target for nCino Inc. (NASDAQ:NCNO) shares, increasing it to $30 from the previous $28, while keeping a Neutral rating on the stock. Currently trading at $26.78, the stock has seen a strong return over the last month despite taking a significant hit over the past six months, according to InvestingPro data. The revision follows nCino’s financial results for the first quarter, which surpassed both BofA Securities’ and Wall Street’s expectations.
nCino, a provider of cloud-based software for financial institutions, presented its fiscal first-quarter results, which provided some reassurance after a period of uncertainty. With revenue of $540.66 million and a healthy gross profit margin of 60%, the company shows promising fundamentals. This reassurance came after two recent events—the company’s investor day on May 20 and a reduction in force (RIF) on May 27—where nCino did not reiterate its full-year guidance and only announced positive preliminary first-quarter results. For deeper insights into nCino’s financial health and growth prospects, InvestingPro subscribers have access to exclusive analysis and detailed metrics.
Bergere noted that the first-quarter performance was a positive step in regaining execution credibility for nCino. The company’s guidance for the second quarter of fiscal 2026 aligns with current market expectations, and the full-year guidance for fiscal 2026 has been slightly increased. Bergere believes that the company’s conservative guidance strategy may pave the way for future "beat-and-raise" scenarios, where actual results outperform guidance.
Despite the improved outlook, Bergere suggests that the risk/reward balance for nCino’s stock remains neutral until there is more evidence that the company has fully resolved its execution issues. While not currently profitable, InvestingPro analysis indicates that net income is expected to grow this year, with analysts predicting profitability. He also seeks greater confidence in nCino’s ability to deliver consistent double-digit organic subscription revenue growth in the upcoming years, building on its current revenue growth rate of 13.45%.
The price objective was raised to $30 to reflect nCino’s better-than-expected execution in the first quarter of fiscal 2026. Bergere has updated his forecast to incorporate the company’s recent results and the guidance provided.
In other recent news, nCino Inc. reported impressive financial results for the first quarter of fiscal year 2026, with earnings per share (EPS) of $0.16 and revenues reaching $144.1 million, both surpassing analyst expectations. This performance was supported by strong subscription revenue, which rose 14% year-over-year to $125.6 million. JMP Securities maintained a Market Outperform rating on nCino, with a price target of $32.00, highlighting the company’s robust financial results. Meanwhile, Goldman Sachs raised its price target for nCino to $27, acknowledging the company’s strong first-quarter earnings but maintaining a Neutral rating due to concerns over top-line indicators like billings and organic subscription revenue. Morgan Stanley (NYSE:MS) also adjusted its price target to $29, reflecting cautious optimism about nCino’s future growth prospects. The company continues to focus on strategic initiatives, including workforce reductions and office space optimization, to enhance operational efficiency. nCino’s management remains optimistic about achieving their fiscal year 2027 goals, despite anticipated challenges in subscription revenue growth for the fourth quarter of fiscal year 2026.
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