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KeyBanc Capital Markets maintained its Sector Weight rating on nCino Inc. (NASDAQ:NCNO), currently trading at $26.78 and showing a -19% year-to-date return, following meetings with company executives on the West Coast this week. According to InvestingPro analysis, the company is currently trading below its Fair Value, suggesting potential upside opportunity. Analyst discussions with nCino’s CFO Greg Orenstein and Strategic Finance & IR representative Harrison Masters centered on bookings guidance, pipeline health, and the company’s artificial intelligence initiatives.
The research firm noted "constructive conversations" with investors during the meetings, which addressed several key topics including Banking Advisor adoption, margin expansion catalysts, pricing model transition feedback, and competitive positioning. With revenue growth of 13.4% and a healthy gross profit margin of 60%, nCino shows promising fundamentals. KeyBanc expressed improved confidence in nCino’s AI strategy and its potential to become the "environment of choice" for customers.
The firm also indicated greater comfort with nCino’s operating margins following the discussions. Despite these positive elements, KeyBanc continues to seek "additional data points to suggest pipeline health and sales efforts are materializing in support of sustainable DD growth."
The analyst specifically highlighted the need for more evidence around nCino’s strategic growth initiatives before changing the current rating. KeyBanc’s assessment acknowledged improving comfort with other aspects of nCino’s business model and strategy.
The meetings occurred during a two-day period this week when nCino executives met with the KeyBanc team and investors to discuss the company’s performance and outlook. The Sector Weight rating suggests KeyBanc expects nCino to perform in line with the sector average over the next 6-12 months. InvestingPro data reveals the company maintains a ’Fair’ overall financial health score, with analysts expecting profitability this year. For deeper insights into nCino’s financial metrics and growth potential, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, nCino Inc. reported first-quarter results for fiscal year 2026, with total revenue and non-GAAP operating income slightly exceeding the upper bounds of the company’s guidance. UBS analyst Nik Cremo raised the price target for nCino to $34, maintaining a Buy rating, while Citizens JMP also lifted the price target to $35, citing nCino’s AI strategy and new guidance approach. Truist Securities increased its price target to $27, noting strong first-quarter results and a 31% year-over-year growth in the international segment. JPMorgan initiated coverage on nCino with a neutral rating, emphasizing the company’s shift towards improving professional services profit margins and targeting long-term gross margins of 71-75%.
KeyBanc Capital Markets maintained a neutral outlook on nCino, pointing to mixed reactions to the company’s new pricing model. The company’s recent strategic moves include a 7% workforce reduction and a decrease in office space, expected to yield approximately $18 million in additional expense savings. Analysts believe these measures, along with nCino’s emphasis on AI and data strategies, could support a positive earnings trajectory for the remainder of fiscal year 2026. Additionally, nCino’s bookings of new annual contract value are showing positive trends, with expectations for organic net ACV bookings to grow by approximately 19% at the midpoint for fiscal year 2026. These developments reflect nCino’s ongoing efforts to enhance its financial performance and market position.
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