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Investing.com - Morgan Stanley raised its price target on nCino Inc. (NASDAQ:NCNO) to $35.00 from $33.00 on Wednesday, while maintaining an Equalweight rating on the banking software provider. The company, currently valued at $3.3 billion, has seen its shares trade at $28.69, with InvestingPro analysis indicating the stock is slightly undervalued.
The price target increase follows nCino’s fiscal second-quarter 2026 performance, which exceeded Morgan Stanley’s expectations. The company has demonstrated strong momentum with revenue growth of ~13% over the last twelve months. According to InvestingPro data, while not currently profitable, analysts expect the company to achieve profitability this year.
Morgan Stanley’s revised fiscal 2027 subscription revenue growth estimate now stands at 11% year-over-year, compared to 10.3% growth expected in fiscal 2026. The firm noted this projection could prove conservative if nCino experiences Banking Advisor-driven pull-forward of renewals or if the broader mortgage market improves.
The approximately 3.3% increase in Morgan Stanley’s fiscal 2027 adjusted EBITDA estimate prompted the price target revision. The new target applies a 25x multiple to the revised base case fiscal 2027 adjusted EBITDA estimate of $167.9 million.
Morgan Stanley indicated nCino’s valuation remains broadly in-line with peers on a growth-adjusted basis, and the firm remains encouraged by improvements in underlying results.
In other recent news, nCino Inc. reported its second-quarter earnings for fiscal year 2026, surpassing analyst expectations with an earnings per share of $0.22, compared to the forecasted $0.14. The company also reported revenues of $148.8 million, exceeding the anticipated $143.18 million and representing a 12% year-over-year increase. Following these results, Citizens JMP raised its price target for nCino to $41, maintaining a Market Outperform rating. Goldman Sachs also adjusted its price target to $29 from $27, while keeping a Neutral rating. The company’s subscription services, particularly in mortgage services and foreign exchange, contributed to the revenue outperformance. These recent developments highlight nCino’s ability to exceed market expectations in both earnings and revenue.
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