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On Wednesday, Keefe, Bruyette & Woods analyst Ryan Tomasello maintained an Outperform rating and a $28.00 price target on nCino Inc. (NASDAQ:NCNO), in light of the company’s recent announcement of a 7% reduction in its workforce. The decision to cut approximately 120 employees, along with reductions in office space, is aimed at improving operational efficiencies.
Tomasello noted that these cost-saving measures were likely not included in the initial fiscal year 2026 guidance provided by nCino’s management in early April. He suggested that the savings from the workforce and office space reductions could lead to an unexpected boost to the company’s earnings and margins for the year.
The analyst’s remarks come just as nCino is preparing to report its fiscal first quarter 2026 results, which will detail the financial performance for the quarter ending April 30. The report is scheduled to be released after the market closes on May 28, 2025.
The workforce reduction at nCino is part of a broader initiative to streamline operations and potentially enhance the company’s financial outlook. Tomasello’s reiteration of the Outperform rating indicates a positive view of nCino’s stock, suggesting confidence in the company’s strategic measures and their potential impact on future financial performance.
Investors will be closely watching nCino’s upcoming earnings report to assess the immediate effects of the workforce reduction on the company’s financial health and to gauge the potential long-term benefits of these cost-saving initiatives.
In other recent news, nCino Inc. has been the focus of several analyst updates following its user conference and Investor Day events. Notably, the company pre-announced first-quarter results that are expected to exceed its guidance for revenue, subscription revenue, and operating income. Needham analysts raised their price target for nCino to $33, citing strong growth potential and a positive outlook on the company’s competitive position. Similarly, Stephens increased their price target to $28, highlighting nCino’s strategic focus on growth areas such as pricing strategies and sector penetration.
Scotiabank (TSX:BNS) also revised its price target to $26, maintaining a Sector Perform rating while expressing confidence in nCino’s growth aspirations for Fiscal Year 2027. Meanwhile, Citizens JMP reiterated a Market Outperform rating with a $32 target, reflecting continued belief in nCino’s long-term potential. Piper Sandler maintained a Neutral rating with a $25 target, acknowledging nCino’s innovation and cross-selling opportunities but expressing a cautious stance pending further execution evidence.
These developments come as nCino’s preliminary results suggest strong near-term momentum, with analysts closely watching the company’s ability to capitalize on its growth strategies and market opportunities. Investors will be keenly observing the upcoming Q1 earnings call for more insights into nCino’s performance and future prospects.
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