What Happened?
Shares of banking software provider nCino (NASDAQ: NCNO) jumped 3.8% in the afternoon session after Stephens upgraded the stock to Overweight from Equal Weight. The analyst firm cited what it called “an achievable near-term set up,” along with growth drivers for the medium to long term and a “reasonable” valuation. Stephens also pointed to the potential for a strong third-quarter report that could beat expectations. The firm believed that solid execution toward its fiscal year 2025 financial targets could lead to a higher valuation for the company's shares.
The shares closed the day at $27.12, up 4.1% from previous close.
Is now the time to buy nCino? Access our full analysis report here.
What Is The Market Telling Us
nCino’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 4.9% on the news that Raymond James upgraded the stock to "Strong Buy" from "Outperform.". The investment firm maintained its $36 price target. The upgrade followed a recent pullback in nCino's stock price, which Raymond James attributed to broader economic fears, creating what the firm saw as an attractive entry point. Analysts noted several potential catalysts for the company, including platform pricing changes, improving customer retention rates, and a return of activity from large enterprise customers and international markets. Additionally, a strengthening mortgage market and the potential for more bank mergers were identified as direct growth drivers for the company.
nCino is down 18.8% since the beginning of the year, and at $27.14 per share, it is trading 36.4% below its 52-week high of $42.64 from November 2024. Investors who bought $1,000 worth of nCino’s shares 5 years ago would now be looking at an investment worth $369.45.
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