Goldman Sachs believes headwinds are clearing for cloud-based banking software company nCino, creating an attractive entry point into the underperforming stock. Analyst Adam Hotchkiss upgraded nCino stock to “buy” from “neutral” on Wednesday and raised his target price to $42 from $34, indicating the stock has about 30% upside potential from Tuesday’s closing price. NCino has lagged other stocks in Goldman’s bank technology coverage by nearly half a percentage point so far this year; Hotchkiss noted that by comparison, other small and mid-cap bank technology stocks have outperformed the S&P 500 by 0.14 percentage points. However, analysts believe nCino is getting closer to turning a profit. Hotchkiss wrote that the impending easing of the Fed’s interest rate policy means that mortgage customer churn may have peaked, and that the company will continue to expand margins and see the benefits of re-partnering with Salesforce. “Combining nCino’s track record of innovation (including artificial intelligence), partner ecosystem, and deep-rooted relationships with large (financial institutions) has the potential to close the performance gap with peers, which we have long viewed as a strong foundational environment. Bank IT expenses,” Hotchkiss wrote in a note to clients. Shares rose more than 3% on Wednesday. The stock has fallen more than 4% so far this year. —CNBC’s Michael Bloom contributed to this report.
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved