William Blair analyst Christopher Kennedy has reiterated their bullish stance on QTWO stock, giving a Buy rating today.
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Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Q2 Holdings’ strong financial performance and promising future prospects. The company’s revenue for the June quarter was at the high end of guidance, and its adjusted EBITDA exceeded expectations, leading to an increase in the 2025 guidance. This positive financial trajectory is supported by a growing mix of high-margin subscription revenue, which now constitutes 81% of the business and is expected to continue growing.
Additionally, Q2 Holdings is experiencing significant margin improvement and free cash flow growth, driven by internal initiatives and a strategic shift towards subscription revenues. The company’s management has raised its free cash flow conversion target for 2026, indicating confidence in sustained financial health. Furthermore, solid new sales activity and a strong pipeline of tier-1 deals suggest continued growth, with the backlog and subscription ARR both showing substantial increases. These factors collectively contribute to Kennedy’s optimistic outlook on Q2 Holdings’ stock.
Kennedy covers the Technology sector, focusing on stocks such as Cantaloupe, Evertec, and Alkami Technology. According to TipRanks, Kennedy has an average return of -1.9% and a 44.68% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $115.00 price target.