Mayank Tandon, an analyst from Needham, reiterated the Buy rating on Q2 Holdings (QTWO – Research Report). The associated price target is $125.00.
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Mayank Tandon’s rating is based on Q2 Holdings’ impressive performance in their recent financial results and strong future outlook. The company achieved robust growth in subscription revenue, with a year-over-year increase of 16.4%, and demonstrated significant growth in remaining performance obligations. This was complemented by a notable quarter for bookings, featuring several high-profile contracts with new Tier 1 and enterprise clients.
Furthermore, Q2 Holdings has introduced a promising guide for the upcoming fiscal year, reflecting confidence in sustained subscription revenue growth and improved margins. The company’s management is effectively capitalizing on favorable market demand, prompting an upward revision of estimates for fiscal year 2025 and beyond. Tandon underscores the potential for the stock to be re-rated higher, reinforcing his Buy rating and raising the target price.
In another report released yesterday, Raymond James also maintained a Buy rating on the stock with a $110.00 price target.