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On Wednesday, KeyBanc Capital Markets maintained its Sector Weight rating on nCino Inc. (NASDAQ:NCNO) following the company’s Investor Day. Analyst Alex Markgraff highlighted the event’s change in tone and increased focus on artificial intelligence (AI) in the company’s product offerings, delivery, and internal efficiency. The company, currently valued at nearly $3 billion, trades at a high EBITDA multiple of 100.5x, suggesting premium pricing despite not being profitable over the last twelve months. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value calculation.
nCino’s Investor Day, which ran concurrently with its user event from May 19 to May 21, featured a preannouncement of F1Q results that exceeded the upper end of the company’s guidance for total and subscription revenue, as well as adjusted operating income. This positive financial preannouncement was a focal point of the day’s proceedings. The company has demonstrated steady growth with revenue increasing by 13.45% over the last twelve months to $540.7 million, though operating with a moderate level of debt. InvestingPro data reveals 8 additional key insights about nCino’s financial position and growth prospects.
Markgraff noted the conservative outlook of the company’s FY26 guide, especially in light of the F1Q preannouncement. The company’s strategic shift towards integrating AI into its products was seen as a move towards greater relevance in the market.
Despite the preannounced F1Q results and the strategic updates, KeyBanc’s position remains cautious. The firm indicated a desire for further evidence of nCino’s execution on its initiatives before adopting a more positive stance on the stock.
In summary, while KeyBanc recognized nCino’s potential and the steps it is taking toward innovation and efficiency, the firm has opted to wait for additional proof of successful execution before considering a rating upgrade.
In other recent news, nCino Inc. announced preliminary first-quarter financial results that exceeded its earlier guidance, with Total (EPA:TTEF) Revenues, Subscription Revenues, and non-GAAP Operating Income all surpassing expectations. The company is set to release its detailed fiscal 2026 results on May 28, 2025. Additionally, nCino has partnered with fintech company Pinwheel to enhance its Consumer Banking Solution with improved Direct Deposit Switching technology. This collaboration aims to streamline the account activation process for banks and credit unions, potentially increasing deposit switch conversion rates.
In analyst updates, Keefe, Bruyette & Woods reaffirmed their Outperform rating on nCino, maintaining a $28 price target. The firm expressed confidence in nCino’s growth strategies, including expanding in Europe and targeting the credit union market. Meanwhile, BofA Securities raised its price target for nCino to $26 from $22, citing confidence in the company’s growth strategy and commitment to becoming a Rule-of-40 company. This reflects a balanced outlook on nCino’s potential for future performance.
These developments come as nCino prepares for its annual "nSight" customer conference, where it will engage with investors and unveil updates on its long-term operating model. The company is also expected to address investor concerns and outline its growth trajectory under the new leadership of CEO Sean Desmond. These events and strategic moves indicate a period of active engagement and potential growth opportunities for nCino.
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