Needham analyst Mayank Tandon has reiterated their bullish stance on NCNO stock, giving a Buy rating today.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Mayank Tandon has given his Buy rating due to a combination of factors that highlight nCino’s strong performance and promising outlook. The company reported third-quarter results that exceeded expectations, driven by robust growth in subscription revenue, which was supported by effective sales execution and favorable trends in mortgage volumes. Additionally, nCino’s lending products showed significant success, with notable deals in Japan and expansions with major U.S. banks and a leading home builder.
Furthermore, nCino demonstrated impressive international growth and introduced new AI products during the quarter. The company’s strategic capital allocation, including the completion of a $100 million share repurchase program, also contributed to the positive outlook. With shares expected to trade at a favorable valuation and management’s focus on achieving the “Rule of 40” by the fourth quarter of fiscal year 2027, Tandon views the risk-reward profile as attractive, justifying the Buy rating and a target price of $38.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $36.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NCNO in relation to earlier this year.