Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - Piper Sandler raised its price target on nCino Inc. (NASDAQ:NCNO) to $34.00 from $28.00 while maintaining a Neutral rating on the stock. The cloud banking software provider, currently valued at $3.3 billion, trades at a notably high EBITDA multiple according to InvestingPro data.
The price target increase follows nCino’s second-quarter results, which exceeded expectations with a $5.3 million subscription revenue beat, described as the largest since 2022. The company’s performance was driven by better-than-anticipated mortgage volumes, which helped growth rebound to 22% compared to 7% in the previous quarter. This momentum builds on nCino’s trailing twelve-month revenue growth of 13.4%, with analysts expecting profitability this year.
Piper Sandler noted significant momentum in nCino’s Banking Advisor adoption, which has increased more than fourfold to 80 customers compared to fewer than 20 at the beginning of 2025. This growth reflects rising interest in applied AI solutions specifically designed for the regulated banking industry.
The firm raised its target EV/FCF multiple to 28x from 25x previously, citing solid execution and encouraging signs of a rebound in the banking software sector. Despite these positive developments, Piper Sandler maintained its Neutral rating.
nCino shares moved more than 10% higher in after-market trading following the earnings announcement and analyst update.
In other recent news, nCino Inc. reported strong second-quarter fiscal 2026 results that have led to multiple analysts raising their price targets for the company. The cloud banking software provider achieved revenue of $148.8 million, surpassing consensus estimates of $143.2 million and marking a 12% year-over-year increase. Following these results, Citizens JMP increased its price target to $41 while maintaining a Market Outperform rating. Needham also raised its target to $38, noting the company’s better-than-anticipated performance and improved fiscal year 2026 outlook. Raymond James set its new target at $36, highlighting nCino’s largest top-line beat in several years. Morgan Stanley adjusted its target to $35, citing the company’s quarterly performance as exceeding expectations. Keefe, Bruyette & Woods raised their target to $34.50, pointing to subscription revenue that exceeded guidance and market expectations. These developments reflect a positive analyst sentiment toward nCino’s recent financial performance.
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