Gold prices just lower; monthly gains on track
On Monday, Barclays (LON:BARC) updated its outlook on nCino Inc. (NASDAQ: NCNO) shares, increasing the price target to $44 from the previous $34 while maintaining an Equalweight rating. The adjustment follows an analysis of the company's third-quarter performance and future projections.
According to Barclays, the expectation for nCino's bookings this year is to be more weighted towards the latter half, following a first half that saw more business from existing customers. This pattern suggests a lower in-year revenue contribution due to the nature of the seat activation model.
Barclays also forecasts approximately 13% growth in Remaining Performance Obligations (RPO) based on an easier comparison, with the third quarter likely marking the lowest point in subscription revenue growth. This comes after a peak in mortgage churn in October 2023 and a peak in total company churn in the fourth quarter of 2024.
Industry data from peers such as Q2 Holdings (NYSE:QTWO), Blend Labs, and Monaker Group (OTC:NXTP) indicated positive trends in enterprise deals and growing optimism in the mortgage sector. Moreover, nCino's upcoming pricing model, set to be introduced later this year and into fiscal year 2026, is expected to shorten the time to revenue for new deals and align nCino's growth more closely with expanding loan volumes and customer asset bases.
Furthermore, nCino's recent acquisition of FullCircl for $130 million on October 30, 2023, is anticipated to contribute to the company's fourth-quarter performance. The acquisition, executed just before the start of the fourth quarter, is likely to add an inorganic element to nCino's financial results.
Barclays' revised stock price target reflects these considerations, signaling a positive outlook on nCino's strategic moves and market position. The company's efforts to optimize its revenue model and expand through acquisitions are key factors in this updated financial assessment.
In other recent news, nCino reported robust Q2 fiscal 2025 results with total revenues of $132.4 million, subscription revenues of $113.9 million, and non-GAAP operating income of $19.3 million. The company also announced the acquisition of FullCircl, a UK-based SaaS company, for $135 million to bolster customer onboarding and lifecycle management capabilities.
In the realm of legal affairs, the Delaware Supreme Court affirmed the dismissal of a stockholder lawsuit related to nCino's mergers with nCino OpCo and SimpleNexus, marking an end to the litigation.
In terms of personnel changes, nCino appointed Joaquín de Valenzuela as the new Managing Director for the EMEA region, aiming to accelerate growth in Europe, the Middle East, and Africa. In operational updates, Tokushima Taisho Bank integrated nCino's Commercial Banking Solution into its business lending services to enhance efficiency and customer service.
Finally, analysts have shown confidence in nCino's prospects. Truist Securities raised its stock price target for nCino from $37.00 to $44.00, maintaining a Buy rating. Raymond (NS:RYMD) James also upgraded nCino from Market Perform to Outperform, underscoring the company's progression toward organic growth acceleration. These developments reflect the ongoing momentum in nCino's operations and strategic initiatives.
InvestingPro Insights
To complement Barclays' analysis, recent data from InvestingPro provides additional context on nCino's financial position and market performance. The company's market capitalization stands at $4.79 billion, reflecting investor confidence in its growth potential. nCino's revenue for the last twelve months as of Q2 2025 reached $506.12 million, with a notable revenue growth of 13.64% over the same period.
InvestingPro Tips highlight that nCino is expected to become profitable this year, aligning with Barclays' positive outlook. The company's strong return over the last three months, with a price total return of 18.34%, and a significant 35.09% return over the past six months, underscore the market's optimistic view of nCino's prospects.
These insights support Barclays' decision to raise the price target, as nCino appears to be gaining momentum. The company's trading near its 52-week high further reinforces this positive sentiment. For investors seeking a deeper understanding of nCino's financial health and growth trajectory, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.