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Investing.com - Needham raised its price target on nCino Inc. (NASDAQ:NCNO) to $38.00 from $33.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter results that exceeded expectations. The cloud banking software provider, currently trading at $28.69, has shown strong revenue growth of ~13% over the last twelve months, reaching $557 million.
The cloud banking software provider delivered better-than-anticipated performance across key metrics, with particular strength in subscription revenue and operating leverage. The strong quarterly results prompted management to issue third-quarter guidance above consensus and raise its fiscal year 2026 outlook. According to InvestingPro data, analysts expect the company to achieve profitability this year, with an EPS forecast of $0.73 for fiscal 2026.
nCino’s customer momentum remained robust during the quarter, with the company signing six new credit unions while also renewing and expanding relationships with two top-50 U.S. banks and a top-five Canadian bank.
Needham cited several growth drivers supporting its more bullish outlook, including new customer wins, expanded relationships with existing clients, improving trends in the mortgage segment, and potential uplift from new pricing initiatives and products like Banking Advisor.
The investment firm views nCino’s risk-reward profile as favorable, noting the stock trades at an enterprise value to fiscal 2027 revenue multiple of approximately 5.5x with potential for further upside surprises.
In other recent news, nCino Inc. has reported its second-quarter fiscal 2026 earnings, surpassing analyst expectations with an earnings per share (EPS) 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. Raymond James raised its price target to $36.00 while maintaining an Outperform rating, noting a more optimistic tone from the company regarding the macroeconomic environment. Morgan Stanley increased its price target to $35.00, maintaining an Equalweight rating and anticipating continued outperformance throughout the year. Citizens JMP raised its price target significantly to $41.00, maintaining a Market Outperform rating, highlighting the strong earnings performance. Additionally, Goldman Sachs adjusted its price target to $29.00, maintaining a Neutral rating, citing subscription outperformance and foreign exchange tailwinds as key drivers. These developments reflect the positive reception of nCino’s financial results among analysts and investors.
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