William Blair Upgrades nCino (NCNO) to Outperform

nCino, Inc. (NASDAQ:NCNO) is one of the 12 Best Fintech Stocks to Buy According to Analysts. On October 10, William Blair upgraded nCino, Inc. (NASDAQ:NCNO) from Market Perform to Outperform.

William Blair believes the recent sell-off in bank technology stocks was overdone and now offers an attractive entry point.

William Blair Upgrades nCino (NCNO) to Outperform

William Blair pointed out that nCino, Inc. (NASDAQ:NCNO) generated $53 million in free cash flow in fiscal 2025 and is aiming to reach the Rule of 40 by the end of fiscal 2027.

The Rule of 40 means that the sum of the annual revenue growth rate and profit margin should exceed 40% for a healthy Software-as-a-Service (SaaS) company.

In April, nCino, Inc. (NASDAQ:NCNO) lowered its fiscal 2026 subscription revenue growth guidance to 10%, or about 6% on an organic basis, down from 12% in 2025.

William Blair expects the company to deliver high-single-digit subscription growth over the long term. This growth is expected to be supported by international expansion, stronger penetration in credit unions, and cross-selling in mortgages.

The firm also believes nCino, Inc.’s (NASDAQ:NCNO) more conservative forecasting approach increases the chances of beat-and-raise quarters ahead.

nCino, Inc. (NASDAQ:NCNO) is a financial technology company that provides a cloud-based platform for financial institutions. It helps community banks, credit unions, independent mortgage banks, and large financial entities to digitize and automate their business processes like client onboarding, loan origination, account opening, and portfolio management.

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. This article is originally published at Insider Monkey.