Shares of nCino are worth picking up after a sell-off on the back of soft guidance, according to KBW. Analyst Ryan Tomasello maintained his outperform rating on the cloud banking stock following its earnings report. On the other hand, Tomasello slashed his price target by $12 to $28, which now implies shares will tick about 0.4% lower from where they finished Tuesday. His new price target appears to be the lowest among Wall Street analysts, per LSEG. Tomasello's call comes after the company posted an outlook for earnings and revenue in the current quarter and for the full year that came in under what analysts polled by FactSet anticipated. Additionally, nCino reported 12 cents, excluding items, in earnings per share for the fourth quarter, missing the Wall Street consensus forecast by 7 cents. Shares tumbled around 31% in Wednesday's premarket, a move Tomasello described as "overdone" and creating an entry point for investors. That marks the latest milestone amid a rough patch, with shares already down more than 16% in 2025, on track for their fourth negative year of the past five. "NCNO's FY2026 revenue guidance disappointed expectations that were already low. That said, we view the stock's -30% after-hours move as an overreaction," Tomasello wrote to clients in a Wednesday note. "While NCNO has arguably become more of a turnaround story, we are inclined to be buyers at these levels." Tomasello said the company appears to be leaning conservative on its outlook. He noted that there are several drivers of potential upside to the soft guidance set by the company. Tomasello also pointed out that nCino has a margin expansion story beyond this year that is currently "underappreciated" by the market. NCNO 1D mountain nCino, 1-day Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
