Piper Sandler analyst Brent Bracelin raised the firm’s price target on nCino (NCNO) to $34 from $28 and keeps a Neutral rating on the shares. The firm notes Q2 results came in well ahead of conservative expectations on a $5.3M subscription revenue beat, largely driven by better-than-feared mortgage volumes that drove a growth rebound to 22% coupled with solid execution. Piper cites higher estimates and a higher target EV/free cash flow multiple of 28-times for the target change given solid execution and encouraging signs of a banking software sector rebound. Despite increasing confidence in the growth visibility, margin model, and potential for applied AI to drive higher win-rates overtime, the firm remains on the sidelines as risk-reward appears balanced after the stock’s move higher.
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