nCino Inc. (NCNO) PT Raised to $42 at Needham, 'encouraged to hear that NCNO had its strongest sales in 10 quarters'

Needham analyst Mayank Tandon raised the price target on nCino Inc. (NASDAQ: NCNO) to $42.00 (from $40.00) while maintaining a Buy rating.

The analyst commented: "NCNO closed FY24 on a positive note, delivering subscription revenue, margins and EPS ahead of expectations. While the initial 1Q and FY25 outlook is mixed, we were encouraged to hear that NCNO had its strongest sales in 10 quarters on the back of broad-based demand improvement. The stronger sales trends drove a 9% Q/Q and 6% Y/Y increase in the RPO to $1B, which bodes well for subscription revenue growth to accelerate over FY25 and into FY26. As part of NCNO's efforts to build out its solutions portfolio, management recently acquired DocFox, a leading provider of onboarding automation solutions for commercial and business banking. Given the building sales momentum and stronger margin trends, and with the shares trading at an EV/revenue multiple of ~6x our FY26 estimate, we view the risk-reward as favorable. Our target is raised to $42."

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