Needham reiterates Buy on nCino stock after strong Q2 results

Needham has reiterated a Buy rating and set a $25.00 price target for nCino Inc. (NASDAQ:NCNO) following the company's strong second-quarter results. The financial software company's Q2 performance exceeded estimates and guidance across all metrics, with notable subscription growth excluding U.S. mortgage and enterprise momentum, as four of the top 20 U.S. customers renewed their contracts early with an average annual contract value increase of over 10%.

The company also reported that 48% of its annual contract value is now on platform pricing, up from 40% in the first quarter. Analysts view nCino as undervalued at its current price, with potential upside based on its enterprise value to fiscal 2028 revenue.

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