Morgan Stanley analyst Michael Infante maintained a Hold rating on nCino (NCNO – Research Report) today and set a price target of $29.00.
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Michael Infante has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for nCino. The company is optimistic about its Banking Advisor and new pricing model, which are expected to drive subscription revenue growth and reduce implementation timelines. However, the transition to the new pricing model is still in its early stages, with only a small portion of the business having adopted it, indicating that the full benefits may take several years to materialize.
Moreover, while nCino’s innovative capabilities, such as the Banking Advisor skills, show promise for enhancing operational efficiency and revenue growth, the actual impact on subscription revenue is yet to be fully realized. The current stock price and market conditions suggest that while there is potential for growth, the risks and uncertainties involved warrant a cautious approach, justifying the Hold rating.
In another report released on May 30, Truist Financial also maintained a Hold rating on the stock with a $27.00 price target.