Piper Sandler has revised its price target for nCino (NCNO, Financial), reducing it from $28 to $25 while maintaining a Neutral rating on the company's stock. This adjustment is part of a broader reassessment within the cloud applications and analytics sector, driven by emerging challenges that are impacting short-term growth prospects.
The firm cited a mix of tariff policies and hurdles in artificial intelligence (AI) adoption as key obstacles contributing to this sector's recent struggles. This marks the fourth consecutive year of slowing growth within the industry, with investor sentiment declining as a result. Piper Sandler's analysis suggests that the enthusiasm surrounding AI's potential benefits may be waning.
Despite the modest direct impact of tariffs on software models, valuation multiples have dropped to their lowest level in seven years. This indicates a more cautious approach from investors, reflecting concerns about the industry's future growth trajectory amidst these headwinds.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Ncino Inc (NCNO, Financial) is $26.14 with a high estimate of $32.00 and a low estimate of $19.00. The average target implies an upside of 12.30% from the current price of $23.28. More detailed estimate data can be found on the Ncino Inc (NCNO) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Ncino Inc's (NCNO, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ncino Inc (NCNO, Financial) in one year is $39.46, suggesting a upside of 69.5% from the current price of $23.28. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ncino Inc (NCNO) Summary page.
