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On Thursday, Needham analysts increased their price target on nCino Inc. (NASDAQ:NCNO) shares, lifting it to $33.00 from the previous $28.00, while reiterating a Buy rating on the stock. Currently trading at $25.48 with a market capitalization of $2.94 billion, nCino has seen its shares decline by about 38% over the past six months. The revision follows a series of meetings at nCino’s user conference and analyst day earlier in the week, which left analysts with a stronger conviction in the company’s competitive stance and growth potential.
At the conference, the Needham team engaged with numerous current and potential nCino customers, as well as the company’s senior leadership. These interactions reinforced the analysts’ view of nCino’s strong market position and the long-term expansion opportunities available to the company. With revenue growth of ~13% in the last twelve months and a healthy gross profit margin of 60%, nCino’s software, which provides a comprehensive digital banking solution, is seen as a key driver for growth, especially given the vast, yet largely untapped global Serviceable Available Market (SAM) valued at nearly $20 billion.
The bullish stance is further supported by nCino’s announcement of preliminary results for the first quarter of fiscal year 2026, which surpassed the company’s own guidance. According to InvestingPro data, while the company is not currently profitable, analysts expect positive earnings this fiscal year. This development suggests that near-term momentum for nCino has increased, and the company is on a trajectory for accelerated growth throughout fiscal year 2026.
The Needham analyst’s statement highlighted the positive outlook: "We came away from the meetings incrementally positive on NCNO’s competitive position and multi-year growth prospects." The analyst also emphasized the scalability of nCino’s business model, which is expected to benefit from the company’s single code-base software that spans across various banking sectors, including commercial, consumer, and mortgage lending.
Investors will be tracking nCino’s progress closely as the company aims to capitalize on its opportunities and strengthen its position in the digital banking software market. The increased price target reflects the confidence that Needham has in nCino’s ability to execute its growth strategy and expand its global footprint.
In other recent news, nCino Inc. pre-announced first-quarter results that are expected to surpass the higher end of its guidance for total revenue, subscription revenue, and operating income. Analysts have responded positively to this announcement, with Scotiabank (TSX:BNS) raising its price target for nCino to $26, Stephens increasing its price target to $28, and Keefe, Bruyette & Woods maintaining an Outperform rating with a $28 target. Piper Sandler and KeyBanc Capital Markets have chosen to maintain their current ratings, citing the need for further evidence of the company’s execution on its strategic initiatives. nCino’s recent Investor Day highlighted its focus on expanding product offerings and integrating artificial intelligence to enhance its banking platform. The company has reiterated its long-term goals, including achieving a rule of 40 by the end of FY2027, which combines growth rate and profit margins. nCino’s strategic initiatives also include expanding its presence in Europe, enhancing cross-selling opportunities, and entering the credit union market. These developments reflect nCino’s commitment to driving sustainable growth and improving operational efficiency.
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