NCNO - nCino downgraded to Neutral at Piper Sandler amid bank industry uncertainty

2023-03-14 07:54:07 ET

• Based on bank industry uncertainty that could heighten near-term execution risk., nCino ( NASDAQ: NCNO ) was downgraded to Neutral from Overweight at Piper Sandler; price target is cut to $22 from $30.
• In early February, the company signed a value added reseller agreement with Rich Data Co or RDC for better banking solutions.
• The company has a diversified customer base across 1,750+ banks and boasts a recurring subscription-based model with 90%+ visibility into the coming year.
• In mid-January, the company reaffirmed its Q4 and FY guidance while it also cut its workforce by ~7% for improving operating margins and achieve profitable growth.
• These actions would lead to $4.5M to $5M charges in Q4.
• RPO metrics and corresponding growth prospects for FY25 could be at risk if uncertain bank industry conditions result in large deal delays.
• The agency adds that M&A potential and a close partnership with Salesforce may help to insulate downside risks.
• Stock is trading 1.4% down premarket.

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