Morgan Stanley analyst Michael Infante maintained a Hold rating on nCino (NCNO – Research Report) today and set a price target of $23.00.
Michael Infante has given his Hold rating due to a combination of factors impacting nCino’s financial outlook. The company is facing challenges in its international sales, particularly in the EMEA region, which are compounded by the recent appointment of a new sales leader and a significant investment in enhancing sales execution. This investment will take time to yield results as the new sales team builds its pipeline.
Additionally, the integration of DocFox, while promising in terms of potential value and revenue uplift, is expected to take time before it significantly impacts the existing customer base. Furthermore, the U.S. mortgage market remains a concern, with nCino experiencing flat growth and acknowledging limited visibility into market forecasts. These factors contribute to a cautious outlook, with expectations of decelerated subscription revenue growth, leading to the Hold rating.
Infante covers the Technology sector, focusing on stocks such as Clearwater Analytics Holdings, nCino, and Q2 Holdings. According to TipRanks, Infante has an average return of 10.9% and a 62.50% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $28.00 price target.