NCNO - nCino stock slips as KeyBanc Capital downgrades on worries over enterprise sales
2023-03-23 07:40:47 ET
- Bank software provider nCino ( NASDAQ: NCNO ) shares slipped in premarket trading as investment firm KeyBanc Capital Markets downgraded the stock on worries over a lengthening enterprise sales cycle.
- Analyst Josh Beck lowered his rating to sector-weight from overweight, noting that mortgage and European demand are also likely to remain headwinds for the company.
- "To be clear, we continue to hold the nCino management team in high regard and remain optimistic on the profitable growth mindset and [long-term] opportunity to create a bank OS across commercial/retail, we just move to a [sector weight] recommendation amid limited visibility," Beck wrote in an investor note.
- Beck added the company has a customer mix of "notable enterprise" (i.e. companies with more than $30B in assets), international and mortgage banks that all may potentially see lengthening sales cycles, which could limit revenue in the near-term.
- Earlier this month, Piper Sandler also downgraded nCino ( NCNO ), citing near-term execution risk .
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nCino stock slips as KeyBanc Capital downgrades on worries over enterprise sales