Morgan Stanley analyst Michael Infante maintained a Hold rating on Q2 Holdings (QTWO – Research Report) yesterday and set a price target of $93.00.
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Michael Infante has given his Hold rating due to a combination of factors related to Q2 Holdings’ current market position and future growth prospects. The company’s management has expressed confidence in achieving a solid subscription revenue growth rate by 2026, with potential outperformance contingent on the execution of bookings and the business mix. While the management’s outlook is optimistic, with expectations of at least a 13% year-over-year growth in subscription revenue, the actual performance may vary based on the proportion of business coming from different tiers of banks.
Despite the positive indicators, such as robust demand for risk and fraud solutions and potential regulatory changes that could boost demand, the unchanged price target of $93 suggests a balanced view of risks and opportunities. The Hold rating reflects a cautious stance, acknowledging both the potential for growth and the uncertainties that could impact Q2 Holdings’ ability to exceed current expectations. Investors are advised to consider these factors alongside other analyses when making investment decisions.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QTWO in relation to earlier this year.