nCino downgraded on bank industry uncertainty at Piper Sandler

Piper Sandler analyst Brent Bracelin last night downgraded nCino to Neutral from Overweight with a price target of $22, down from $30. The analyst says bank industry uncertainty could heighten the company’s near-term execution risk. nCino has grown into one of the leading vertical software platforms with a diversified customer base across 1,750 banks and boasts a recurring subscription-based model with 90% visibility into the coming year, the analyst tells investors in a research note. However, its revenue performance obligation metrics and corresponding growth prospects for fiscal 2025 could be at risk if uncertain bank industry conditions result in large deal delays, says Piper.