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Investing.com - Truist Securities has reiterated its Hold rating and $32.00 price target on nCino Inc. (NASDAQ:NCNO), a cloud banking software provider with a market capitalization of $2.81 billion. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis.
The firm’s analysis follows recent discussions with nCino management regarding the macroeconomic backdrop for cloud banking and financial technology services, as well as the company’s potential growth drivers. This view is supported by nine analysts who have revised their earnings estimates upward for the upcoming period, as reported by InvestingPro.
Truist Securities noted several growth opportunities for nCino, including pent-up demand in mortgage technology, the U.S. market, and commercial lending opportunities, along with updates on recent acquisitions and their strategic importance. The company has demonstrated solid revenue growth of ~13% in the last twelve months, maintaining a healthy gross profit margin of 60%.
The firm has adjusted its fiscal year 2027/calendar year 2026 estimates, slightly decreasing organic subscription revenue growth projections while modestly increasing non-GAAP profit and cash flow estimates.
While maintaining its Hold recommendation, Truist Securities acknowledged nCino’s potential growth inflection point and path to achieving a long-term "Rule of 40" business model, which combines growth rate and profit margin metrics.
In other recent news, nCino Inc. reported strong fiscal second-quarter results, with total revenue and non-GAAP operating income surpassing the high end of guidance by approximately 4% and 24%, respectively. This performance was bolstered by a 9% FXN organic subscription revenue growth, exceeding UBS’s estimates. Consequently, UBS raised its price target for nCino to $39, maintaining a Buy rating. Truist Securities also increased its price target to $32, citing the company’s successful growth initiatives that contributed to better-than-expected subscription revenue and profits. Piper Sandler followed suit, raising its price target to $34, noting a significant $5.3 million subscription revenue beat and a rebound in growth to 22% from 7% in the previous quarter.
nCino has also expanded its European presence by entering the Spanish market through a partnership with Baghdadi Capital Group. The partnership will see the implementation of the nCino Platform across various operations of the family office. Additionally, nCino launched new AI-driven mortgage tools aimed at streamlining the loan origination process. These innovations include AUS Smart Tasks and Refi Opportunity Analyzer, designed to enhance efficiency and identify refinance opportunities.
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