nCino Stock Rises In Premarket Following Analyst’s Upgrade: Retail Mood Subdued

Shares of nCino, Inc. ($NCNO), a platform provider for the banking industry, rose in Monday’s premarket session following a positive analyst action.

Barclays analyst Saket Kalia upgraded the Wilmington, North Carolina-based company’s rating to ‘Overweight’ from ‘Equal Weight,’ and held steady the $44 price target, TheFly reported. The price target suggests scope for an upside potential of about 30%.

Kalia’s optimism is based on his view that commercial lending, mortgage volume and vertical-specific software spending by banks will likely improve in 2025.

The analyst said nCino’s new platform pricing suggests this may have been the last cut and the new pricing also supported estimates. He also noted that nCino stock traded at a price discount to vertical software-as-a-service leaders.

In mid-December, UBS initiated the stock with a ‘Buy’ recommendation and $44 price target. The firm called nCino as a leading bank IT provider with a strong growth runway and margin upside.

NCNO sentiment and message volume January 6, 2025, premarket as of 6:13 am ET | Source: Stocktwits

On Stocktwits, sentiment toward nCino stock has turned to ‘neutral’ (48/100) from ‘extremely bearish’ a month ago. Message volume remains ‘high,’ reflecting increasing retail chatter about the stock.

A retailer user of the platform said he is bullish on the stock and will continue to hold it.

nCino stock ended 2024 essentially unchanged, underperforming the S&P 500 Index, which rose 23.3%. The stock came under selling pressure in early December when the company issued subpar guidance guidance. The third-quarter results, however, exceeded expectations, with remaining performance obligations (RPO) up a solid 19%. The company said it clinched over 30 multi-solution deals and more gross bookings from net new customers than the previous two quarters combined.

In premarket trading, nCino stock was up 3.14% at $35.14, as of 6:13 a.m. ET.

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