Baird Upgrades nCino (NCNO) to Outperform, Sees 29%

Business Insider

16-07-2025

Shares of nCino (NCNO), a global provider of cloud-based software solutions in the financial services industry, are gaining momentum after an upgrade from Baird. Five-star analyst Joseph Vruwink raised the firm's rating from Neutral to Outperform and lifted the price target to $38 from $30. That implies a potential upside of about 29% from the stock's recent price of $29. Vruwink cited improved macro conditions, new product traction, and go-to-market execution as reasons for a more constructive view.
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Confidence Returns as nCino Resets and Rebounds
According to Baird, management appears increasingly confident, following a financial reset earlier this year that reset investor expectations. The analyst believes nCino could deliver earnings beats in the coming quarters and sees the current setup as one of the best in years. Management meetings also highlighted stronger internal execution and increased enthusiasm around product updates.
Vruwink's bullish sentiment comes as a respite for nCino, which has had a tough year, down 12% year-to-date. Most of the decline occurred in March, following the company's reset of its financial outlook for fiscal 2026. Since then, the stock has bounced back and now trades within 5% to 10% of its pre-reset levels. Vruwink believes nCino is in the early stages of regaining investor confidence. The firm expects subscription growth to return to double digits and management to reach its goal of achieving the Rule of 40, which combines profit margin and revenue growth.
While the stock still faces hurdles, including cautious sentiment across small-cap software names, Baird sees a favorable risk-reward at current levels. For now, the market will be watching for signs that nCino can deliver consistent execution and meet its growth targets.
Is nCino a Good Stock to Buy?
On the Street, analysts are split over nCino, as it is rated Moderate Buy based on 17 analyst reviews, with 7 Buy and 10 Hold ratings. The average Wall Street price target is $31.38, indicating a 5% upside. No analysts currently rate the stock a Sell.