Raymond James Upgrades nCino to Strong Buy, Stock Rises 5%

Core Viewpoint - Raymond James upgraded nCino Inc. to Strong Buy from Outperform, setting a price target of $36 after a recent stock pullback attributed to macro concerns, with shares increasing over 5% intra-day on Monday [1] Growth Drivers - Expected growth drivers over the next 6–18 months include platform pricing changes, retention rates returning to historical mid-to-high-90s range, a rebound in enterprise bookings, international momentum, improved mortgage activity with potential upside if rates decrease, and the resurgence of bank M&A as a direct tailwind [2] - Strong competitive positioning and rising incremental margins support the investment thesis [2] Valuation and Market Concerns - Despite resurfacing credit risk worries in bank end-markets and broader AI uncertainty impacting the stock, longer-term investors may find value at current levels, with valuation around ~5x revenue and ~20x EBITDA based on fiscal 2027 estimates [3]