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On Thursday, Truist Securities increased its price target for nCino Inc. (NASDAQ:NCNO) shares to $27, up from the previous $21, while keeping a Hold rating on the stock. The company, currently valued at $3.24 billion, trades at a high EBITDA multiple of 108x. Analyst Terry Tillman at Truist Securities cited the company’s solid first-quarter results, which surpassed expectations, particularly in subscription revenue. According to InvestingPro data, nCino has achieved revenue growth of ~13.5% over the last twelve months.
The analyst noted that nCino’s new bookings are advancing well and that the company’s sales pipeline shows positive signs. The international segment of the business also demonstrated strong growth, with a 31% year-over-year increase, contributing to the company’s impressive gross profit margin of 60%. Stability in the mortgage sector was observed, and customer purchasing behavior has not been impacted by macroeconomic factors. InvestingPro analysis reveals several more key insights about nCino’s growth trajectory and financial health, available in the comprehensive Pro Research Report.
nCino’s recent announcement of a 7% workforce reduction was highlighted as a move that could provide the company with more investment flexibility. Truist Securities has adjusted its revenue and profit outlook for the financial year 2026 upwards, although the annual contract value (ACV) guidance for FY26 remains the same.
The revised price target to $27 from $21 is based on higher estimates and a change in the terminal multiple assumption in Truist’s long-term discounted cash flow (DCF) analysis. The firm has decided to maintain its Hold rating on nCino stock, indicating a watchful approach for visible growth inflection points before changing its stance.
In other recent news, nCino Inc. reported strong financial results for the first quarter of fiscal year 2026, with revenue increasing by 13% year-over-year to $144.1 million, surpassing the consensus estimate of $140.9 million. The company’s subscription revenue also exceeded expectations, reaching $125.6 million, marking a 14% rise. Analysts have responded to these results with various adjustments to nCino’s stock price targets. Keefe, Bruyette & Woods raised their target to $33, citing higher subscription revenue and reduced operating expenses. BofA Securities increased their target to $30, maintaining a Neutral rating, while Morgan Stanley (NYSE:MS) adjusted their target to $29, highlighting cautious optimism about future growth. Goldman Sachs set their target at $27, noting a slowdown in key top-line indicators despite first-quarter achievements. JMP Securities maintained a Market Outperform rating with a target of $32, acknowledging the robust financial performance. These developments underscore nCino’s strategic emphasis on growth and cost management amid macroeconomic uncertainties.
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