Morgan Stanley analyst Michael Infante maintained a Hold rating on nCino today and set a price target of $35.00.
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Michael Infante has given his Hold rating due to a combination of factors including the company’s current financial outlook and strategic initiatives. Despite a tactically positive stance on nCino, the unchanged annual ACV uplift and the company’s cautious full-year outlook suggest a conservative approach to future estimates. The stock is expected to perform well towards the mid-30s, but further valuation increases depend on the acceleration of subscription revenue growth in FY27.
Infante notes that while there is potential for outperformance, particularly with the anticipated 5% growth in the mortgage sector, the visibility into mid-teens growth is crucial for a more significant re-rating. The company’s transition to a new pricing model and the maturation of its products are seen as key drivers for future growth. However, given the current market conditions and the need for more substantial evidence of growth acceleration, a Hold rating is deemed appropriate.
According to TipRanks, Infante is a 2-star analyst with an average return of 1.0% and a 46.15% success rate. Infante covers the Technology sector, focusing on stocks such as nCino, Clearwater Analytics Holdings, and Q2 Holdings.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $34.00 price target.