DA Davidson Reiterates Neutral Rating on Q2 Holdings (QTWO)

DA Davidson analyst Peter Heckmann reiterated a Neutral rating and $90.00 price target on Q2 Holdings (NYSE: QTWO).

The analyst commented, "Q2 is scheduled to report 4Q results after the close on Wednesday, May 7th with a call planned for 5:00pm ET. We expect the company will meet or modestly exceed our forecasts. With 1Q results, we expect management will affirm (or modestly finetune) their initial 2025 guidance. We are maintaining our NEUTRAL rating on QTWO with a $90 price target. For the first quarter, we are forecasting 12% Y/Y growth in Non-GAAP revenue to $185.9M (with the consensus at $186.7M). We expect growth in the quarter was led by 16% Y/Y growth in higher-margin Subscription revenue to $151.6M (82% of total revenue in the period). We are forecasting adjusted EBITDA increased 50% Y/Y to $37.9M (with the consensus at $38.1M). With an increased mix to higher-margin Subscription revenue and the benefit of cost reductions over the last two years, we expect related margins rose 520bp Y/Y to 20.4%."

For an analyst ratings summary and ratings history on Q2 Holdings click here. For more ratings news on Q2 Holdings click here.

Shares of Q2 Holdings closed at $78.71 yesterday.

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