nCino (NCNO) is prioritizing artificial intelligence as a core product strategy to drive structural pricing benefits, Morgan Stanley said in a note Friday.

Pricing tailwinds and more achievable estimates support a stronger near-term setup, the firm said, following nCino's nSight 2025 conference, where it outlined its vision to become a leader in AI banking.

Morgan Stanley said that while it remains cautious long-term, it sees signs of progress. The firm highlighted that estimate revisions-along with new product offerings like the AI-powered Banking Advisor-improve the likelihood of beat-and-raise performance in the near term.

Analysts are looking for more clarity on execution in international markets and cross-sell momentum, particularly in the Commercial and Consumer segments. These are key to achieving low-double-digit subscription revenue growth and a potential valuation re-rating, the note said.

The brokerage raised its fiscal 2026 and 2027 revenue estimates by 0.7% and 0.6%, respectively, and sees reduced customer churn and accelerating cross-sell as potential growth drivers. Still, the firm wants to see stronger evidence of inflection in cross-sell activity and consumer adoption before turning more constructive.

Morgan Stanley reiterated its equalweight rating on the stock and raised its price target to $27 from $23.

Price: 26.57, Change: -0.09, Percent Change: -0.34