Analyst Terry Tillman of Truist Financial maintained a Hold rating on nCino, with a price target of $27.00.
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Terry Tillman has given his Hold rating due to a combination of factors that reflect both positive performance and ongoing uncertainties. nCino delivered a strong third-quarter performance, surpassing revenue and profit expectations, with notable growth in subscription revenue. The company has seen broad demand across various segments and geographies, driven by AI adoption, and has successfully transitioned a significant portion of its annual contract value to a new pricing structure.
However, despite these positive developments, Tillman maintains a Hold rating due to uncertainties surrounding the potential for growth reacceleration. The decision to lower the price target from $32 to $27 reflects these concerns, as well as the impact of lower-than-expected operating and free cash flow. Additionally, while the company has made strides in efficiency, the professional services revenue saw a slight decline, and there are challenges related to one-time subscription revenue comparisons from the previous year.
Tillman covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and Zeta Global Holdings Corp. According to TipRanks, Tillman has an average return of -1.3% and a 40.88% success rate on recommended stocks.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $30.00 price target.