Piper Sandler Sees Promise but Keeps Neutral Rating on nCino (NCNO)

On Wednesday, May 21, Piper Sandler reiterated a “Neutral” rating for nCino, Inc. (NASDAQ:NCNO) and kept the price target steady at $25.

The firm highlighted that at its recent Investor Day, the company showcased its expanding product offerings, the introduction of new agents, and the potential to cross-sell within its large customer base of over 2,700 clients. Piper Sandler’s analysis indicated that nCino, Inc. (NASDAQ:NCNO) has approximately 30% cross-selling penetration in commercial clients and less than 15% in consumer clients. According to the firm, this presents a substantial medium-term growth opportunity.

Piper Sandler Sees Promise but Keeps Neutral Rating on nCino (NCNO)

A financial professional utilizing a cloud-based software application.

Piper Sandler also noted that the company is accelerating innovation, especially by developing AI capabilities designed for the banking sector. This focus on technological advancement could help nCino, Inc. (NASDAQ:NCNO) solidify its position as a leading end-to-end banking platform. Despite these positive signs, the firm is cautious and is looking for more proof of successful execution before changing the stock rating.

Preliminary results for Q1 show that nCino, Inc. (NASDAQ:NCNO) is exceeding the higher end of its estimates for revenue, subscription, and operating income. However, Piper Sandler is maintaining its current rating while looking for more concrete evidence of growth that could rebuild investor confidence. The firm believes that the Q1 earnings call, scheduled for May 28, will provide clearer insights.

nCino (NASDAQ:NCNO) is a global financial technology company that offers a trusted platform of intelligent solutions for the financial services industry. The company has integrated AI and actionable insights into its platform, enabling financial institutions to improve strategic decision-making, risk management, and customer satisfaction.

While we acknowledge the potential of NCNO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NCNO and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.