Demystifying Ncino: Insights From 6 Analyst Reviews
Ratings for Ncino (NASDAQ:NCNO) were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 3 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Ncino, revealing an average target of $38.67, a high estimate of $43.00, and a low estimate of $35.00. Observing a downward trend, the current average is 0.34% lower than the prior average price target of $38.80.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Ncino among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Aaron Kimson | JMP Securities | Announces | Market Outperform | $43.00 | - |
| Brent Bracelin | Piper Sandler | Maintains | Overweight | $38.00 | $38.00 |
| Charles Nabhan | Stephens & Co. | Maintains | Equal-Weight | $35.00 | $35.00 |
| Joe Vruwink | Baird | Lowers | Neutral | $36.00 | $37.00 |
| Mayank Tandon | Needham | Maintains | Buy | $42.00 | $42.00 |
| Brent Bracelin | Piper Sandler | Lowers | Overweight | $38.00 | $42.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ncino. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Ncino compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Ncino's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of Ncino's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Ncino analyst ratings.
Unveiling the Story Behind Ncino
Ncino Inc is a provider of cloud-based software for financial institutions. Its software solution digitizes, automates, and streamlines inefficient and complex processes & workflow and utilizes data analytics & artificial intelligence that enables financial institutions to onboard new clients, make loans and manage the entire loan life cycle, open deposits, and other accounts and manage regulatory compliance. It also offers professional services, including configuration & implementation, training, and advisory services. Ncino generates the majority of its revenue from subscription services. The company caters to financial institutions, enterprise banks, regional banks, community banks, and credit unions. The vast majority of its revenue comes from the United States.
Understanding the Numbers: Ncino's Finances
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Ncino showcased positive performance, achieving a revenue growth rate of 12.68% as of 30 April, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -2.32%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Ncino's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.28% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Ncino's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.22%, the company showcases efficient use of assets and strong financial health.
Debt Management: Ncino's debt-to-equity ratio is below the industry average. With a ratio of 0.12, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.