Piper Sandler analysts reaffirmed an Overweight rating and a $38 price target on nCino (NASDAQ:NCNO) following investor meetings with CFO Greg Orenstein and Director of Strategic Finance and IR Harrison Masters. The analysts expressed optimism about new products, pricing strategies, and go-to-market changes that could enhance adoption within the banking sector. Despite being traditionally slow-moving, the industry is showing signs of recovery following the 2023 banking crisis.
The analysts highlighted several key drivers for nCino’s growth heading into 2025: normalization of churn rates, increasing consumer traction, momentum in multi-cloud cross-selling, new AI functionalities bolstered by a five-year data collection advantage with nIQ, and stabilizing industry conditions that could boost spending on bank modernization projects. The analysts also noted that nCino’s risk-reward ratio is attractive at 5.9x 2025 EV/S compared to the peer median of 9.1x, supporting the view of a profitable vertical SaaS model.