Chip stocks fall with Nvidia after data center rev disappointment
On Thursday, JMP Securities maintained their optimistic stance on nCino Inc. (NASDAQ:NCNO) shares, reiterating a Market Outperform rating and a price target of $43.00. The firm’s analysis included a mix of data points, with a tally of 15 in total, comprising 6 positives and 9 negatives. According to InvestingPro data, the company currently trades at $29.73, with analysts’ targets ranging from $38 to $45. The evaluation comes as nCino prepares to report its fiscal fourth quarter 2025 results on April 1st.
nCino’s stock performance has been under scrutiny, having declined 12% year to date. This drop is contrasted with a smaller 3% decrease observed in the Russell 3000 index over the same period. InvestingPro analysis shows the company maintains strong fundamentals with a 60.25% gross profit margin and 13.19% revenue growth over the last twelve months. JMP’s analyst Aaron Kimson highlighted these market movements while reaffirming the firm’s rating and price target for the cloud banking software provider.
The reaffirmed $43 price target suggests that JMP Securities sees potential for nCino’s stock value to climb from its current level. InvestingPro reveals several positive indicators, including expectations for net income growth and strong liquidity position, with current assets nearly double short-term obligations. The target is held despite the mixed data points collected by the analyst, which indicate a nuanced view of the company’s performance and prospects. Subscribers can access 7 additional ProTips and comprehensive financial analysis through the Pro Research Report.
In anticipation of the upcoming earnings report, investors and market watchers will be paying close attention to nCino’s financial metrics and management commentary. The report will provide a clearer picture of the company’s performance in the fiscal quarter and could influence the stock’s trajectory moving forward.
As the market awaits nCino’s financial disclosures on April 1st, JMP Securities’ maintained rating and price target reflect a steady confidence in the company’s stock amidst a broader market context that has seen a general downturn.
In other recent news, nCino Inc. has made headlines with its recent acquisition of Sandbox Banking for $52.5 million, with an additional potential earn-out of $10 million. This strategic move aims to enhance nCino’s data integration capabilities and operational efficiency for financial institutions, potentially increasing revenue through improved product offerings. In analyst updates, JMP Securities maintained its Market Outperform rating for nCino, with a price target of $43.00, citing the acquisition as a positive step toward revenue growth. Additionally, Raymond (NSE:RYMD) James adjusted its price target for nCino to $42.00 while retaining an Outperform rating, emphasizing the company’s potential for organic growth despite challenges in the mortgage market and macroeconomic uncertainties.
JMP Securities also highlighted the opportunities for nCino to expand within its existing customer base, particularly through new pricing strategies for commercial products. Furthermore, nCino announced the appointment of Justin Nyweide from HMI Capital to its Board of Directors, enhancing the board’s expertise in growth investments. The company is expected to provide cautious fiscal year 2026 guidance, aligning with the recent CEO change, as noted by JMP Securities. Despite adjustments in earnings and revenue forecasts, analysts remain optimistic about nCino’s long-term growth trajectory.
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