Asia tech stocks slide tracking Wall St losses amid AI doubts, govt. uncertainty
On Thursday, Keefe, Bruyette & Woods analyst Ryan Tomasello increased the price target for nCino Inc. (NASDAQ:NCNO) shares to $33.00, up from the previous $28.00, while maintaining an Outperform rating on the stock. The adjustment comes in response to nCino’s first-quarter earnings, which surpassed expectations and prompted the firm to raise its non-GAAP operating income forecasts for fiscal years 2026 and 2027 by 6% and 7%, respectively. The new price target is based on a 6.3x multiple of the company’s estimated fiscal year 2027 sales and a 25x multiple of its estimated EBITDA for the same period. With current revenue of $540.66M and a market capitalization of $3.09B, InvestingPro analysis reveals several additional insights about nCino’s financial health and growth prospects. Subscribers can access 7 more exclusive ProTips about NCNO’s performance and outlook.
Tomasello attributed the revised estimates to nCino’s higher subscription revenue and reduced operating expenses. The company’s recent performance, characterized by a beat-and-raise outcome, is viewed as a strong kickoff to the fiscal year. The analyst expressed optimism that the positive trend could continue in subsequent quarters, given nCino’s conservative approach to guidance.
nCino’s recent earnings announcement also provided updates that suggest stable purchasing patterns and continued momentum in the company’s sales pipeline, despite prevailing macroeconomic uncertainties. These factors are seen as affirmations of nCino’s strategic emphasis on accelerating growth.
Moreover, the company’s recent cost-cutting measures are expected to enhance investor confidence in nCino’s ability to achieve its rule of 40 targets by the end of fiscal year 2027. The rule of 40 is a benchmark in the software industry that suggests a company’s combined growth rate and profit margin should exceed 40%. For a comprehensive understanding of nCino’s financial position and growth trajectory, investors can access the detailed Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks, which includes in-depth analysis and actionable insights.
In other recent news, nCino Inc. reported its first-quarter financial results for fiscal year 2026, which exceeded Wall Street’s expectations. The company achieved a revenue of $144.1 million, marking a 13% increase year-over-year, and an earnings per share (EPS) of $0.16, surpassing the forecasted $0.1553. This positive performance has led several financial firms to adjust their price targets for nCino. BofA Securities raised its target to $30, while maintaining a Neutral rating, citing better-than-expected execution. Similarly, Morgan Stanley (NYSE:MS) increased its target to $29, also maintaining an Equalweight rating, reflecting cautious optimism about the company’s future growth.
Goldman Sachs adjusted its target to $27, noting the company’s strong first-quarter performance but maintaining a Neutral rating due to potential challenges in the second half of the year. JMP Securities, however, maintained a Market Outperform rating with a price target of $32, highlighting nCino’s robust financial results and revenue growth. The company’s subscription revenue reached $125.6 million, a 14% year-over-year increase, although this represented a slight deceleration from the previous quarter’s growth. These developments come as nCino continues to focus on AI and innovation, while also managing operational challenges like workforce reductions and restructuring costs.
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