Latest news with #Vruwink
Business Insider
16-07-2025
- Business
- Business Insider
Baird Upgrades nCino (NCNO) to Outperform, Sees 29%
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. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with , delivered to your inbox every week. 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.
CNBC
14-07-2025
- Business
- CNBC
Baird upgrades this fintech stock, calls for more than 30% upside
There's a rosy outlook ahead for nCino , according to Baird. The bank upgraded the financial technology stock to outperform rating from neutral. Analyst Joe Vruwink new price target of $38, up from $30, implies potential upside of 32%. Vruwink pointed out that the backdrop looks extremely favorable for nCino. Moreover, the company's management appears to be more positive about reaching its goals. "Current setup has many parallels to our favorite stock calls: macro/spend conditions likely turning higher, 'mechanical' growth accelerants, GTM catalysts, new product momentum…all with expectations having reset lower, yielding (we believe) the best estimate upside argument in years," Vruwink wrote. "Recent travel with management underscored execution is key; many details shared are consistent with prior messaging, though confidence/enthusiasm around changes adds conviction." The company appears to be "well underway" on many initiatives that should reaccelerate its subscription growth into double digits on a year-over-year basis. Meanwhile, nCino's management is also confident it can achieve the so-called "Rule of 40" — or have a combined revenue growth rate and profit margin that exceeds 40%. Baird added that now presents an opportune time to buy into nCino, given that the company has reached an important crux in its thesis. "nCino undertook material reset in financial communications entering FY26 (Jan), and while short-term negative for the stock, we view this as a turning point in the investment case (stock now back to within 5-10% of late-March levels on relative basis)," he wrote. "In analyzing comparable episodes in small-cap vertical software, those that come back from the abyss (i.e., inflect growth rates closer to pre-reset levels) are able to fully recapture valuation (at pre-reset level)." The stock rose more than 2% following the upgrade. Shares of nCino have slipped 14% this year. NCNO YTD mountain NCNO YTD chart Analysts are mostly on the sidelines when it comes to nCino. LSEG data shows that 11 of 17 analysts covering the stock rate it a hold. Another six have a buy rating.
