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Investing.com - Raymond James upgraded nCino Inc. (NASDAQ:NCNO) from Outperform to Strong Buy and maintained its price target of $36.00. The company, currently valued at $2.75 billion, has seen its stock decline 35% over the past year, with InvestingPro data showing the stock is trading below its Fair Value.
The upgrade follows a recent pullback in nCino’s stock price, which Raymond James attributes largely to macroeconomic fears, creating what the firm sees as an attractive entry point for investors. Technical indicators from InvestingPro support this view, with RSI suggesting the stock is in oversold territory.
Raymond James identified multiple potential catalysts for nCino, including platform pricing changes, normalizing retention rates trending toward historic mid-to-high 90s levels, return of Enterprise bookings and International activity, increasing mortgage tailwinds, and the return of bank M&A as a direct growth driver.
The firm highlighted that despite resurfaced end-market credit risk concerns and continued AI uncertainty weighing on shares over the past month, nCino’s competitive positioning and increasing incremental margins support a favorable 6-18 month outlook.
Raymond James values nCino at approximately 5x revenue and 20x EBITDA based on the firm’s fiscal year 2027 estimates, which correspond to calendar year 2026.
In other recent news, nCino, Inc. reported strong fiscal second-quarter results, prompting UBS to raise its price target for the company from $34.00 to $39.00, while maintaining a Buy rating. The company achieved total revenue and non-GAAP operating income approximately 4% and 24% above the high end of guidance, respectively. This performance was driven by about 9% FXN organic subscription revenue growth, surpassing UBS’s expectations. Following these results, Truist Securities also increased its price target on nCino to $32.00 from $27.00, maintaining a Hold rating, as the company progresses with growth initiatives.
Additionally, nCino has expanded its European presence by partnering with Baghdadi Capital Group to enter the Spanish market, implementing its platform across various operations. In another development, the company launched AI-driven mortgage tools aimed at streamlining the loan process by accelerating loan origination and reducing underwriting touchpoints. These innovations include AUS Smart Tasks and Refi Opportunity Analyzer, which help interpret underwriting findings and identify refinance candidates. Truist Securities reiterated its Hold rating on nCino, citing a balanced growth outlook amid these developments.
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