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Investing.com - Raymond James raised its price target on nCino Inc. (NASDAQ:NCNO) to $36.00 from $35.00 on Wednesday, while maintaining an Outperform rating following the company’s second-quarter fiscal 2026 results. The cloud banking software provider, currently valued at $3.3 billion, trades at $28.69 with analyst targets ranging from $27 to $38.
The cloud banking software provider delivered its largest top-line beat in several years, exceeding subscription revenue guidance midpoint by 4%, according to Raymond James. The firm noted a significantly more optimistic tone from nCino regarding the macroeconomic environment. InvestingPro data shows the company achieved 13.4% revenue growth in the last twelve months, with analysts expecting profitability this fiscal year despite current losses.
Raymond James highlighted three key factors driving potential bookings growth: enterprise and international activity picking up, platform pricing traction including early renewals tied to Banking Advisor adoption, and normalizing churn, particularly in the mortgage segment.
The analyst firm indicated that reduced churn was a primary factor contributing to nCino’s second-quarter outperformance, with the company also raising its outlook for fiscal year 2026.
Raymond James suggested nCino continues taking a conservative approach to guidance, creating potential for further upward revisions as fiscal 2026 progresses, with the stock trading at approximately 6 times fiscal 2027 estimated revenue and 26 times estimated EBITDA based on its higher after-hours price. The company maintains a moderate debt level with a debt-to-equity ratio of 0.26, while operating with a healthy gross profit margin of 60%.
In other recent news, nCino 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, marking a 12% year-over-year increase. Following these strong earnings results, several investment firms have adjusted their price targets for nCino. Citizens JMP raised its price target to $41 from $35, maintaining a Market Outperform rating, while Goldman Sachs increased its target to $29 from $27, keeping a Neutral rating. Morgan Stanley also raised its price target to $35 from $33, continuing with an Equalweight rating. The revenue outperformance was attributed to strong subscription growth, particularly in mortgage services and foreign exchange benefits. These developments indicate that analysts see potential for continued outperformance by nCino throughout the year.
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