Morgan Stanley still ‘holding breath,’ stays Equal Weight on nCino

Morgan Stanley analyst James Faucette maintains an Equal Weight rating and $24 price target on nCino shares after the company’s earnings report, noting that the broader demand environment “appears to have bottomed” and management’s commentary surrounding customers having “caught their breath” aligns well with the potential one-time disclosure that ACV-based bookings grew 22% year-over-year in the quarter. However, while banks “may have caught their breath, we’re holding ours,” says the firm, which adds that “a lack of lumpy U.S. enterprise wins” continues to drive low-single digit RPO growth.