Keefe, Bruyette & Woods raises nCino stock price target to $34.50

Investing.com - Keefe, Bruyette & Woods raised its price target on nCino Inc. (NASDAQ:NCNO) to $34.50 from $33.00 while maintaining an Outperform rating following the company’s strong quarterly results.

The financial services firm cited nCino’s subscription revenue exceeding the high end of guidance by 3.4% and beating consensus estimates by 4.1%. Non-GAAP operating income and earnings per share also significantly outperformed market expectations. The company has maintained strong revenue growth, with InvestingPro data showing a 13.4% year-over-year increase in revenue to $557 million.

nCino has raised its fiscal year 2026 subscription revenue guidance by 1.3% and increased its non-GAAP operating income and earnings per share guidance by 5% and 11%, respectively.

The company’s management expressed confidence in meeting or exceeding its fiscal year 2026 annual contract value bookings targets, citing strong first-half performance and pipeline visibility for the second half of the year. Management also noted that current deal activity is the strongest it has seen in "quite some time."

Keefe, Bruyette & Woods maintained its Outperform rating on nCino stock due to the company’s consistent pattern of exceeding expectations and raising guidance, while acknowledging that valuation appears more full at current trading levels.

In other recent news, nCino Inc. reported robust second-quarter fiscal 2026 results, significantly surpassing revenue and earnings expectations. The company reported revenue of $148.8 million, exceeding consensus estimates of $143.2 million, marking a 12% year-over-year increase. This strong performance led several analysts to adjust their price targets for nCino. Citizens JMP raised its price target to $41, maintaining a Market Outperform rating, while Needham increased its target to $38, continuing with a Buy rating. Raymond James also raised its target to $36, noting the company’s largest top-line beat in several years and a more optimistic outlook on the macroeconomic environment. Morgan Stanley adjusted its target to $35, citing expectations of continued outperformance. Goldman Sachs set its new price target at $29, highlighting subscription outperformance driven by mortgage services and foreign exchange tailwinds. These developments reflect a positive sentiment among analysts regarding nCino’s future prospects.

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