Canaccord Genuity analyst David Hynes maintained a Hold rating on Q2 Holdings (QTWO) today and set a price target of $60. The company’s shares opened today at $53.74.
Hynes noted:
“We downgraded QTWO a year ago based at that time on the view that NTM growth and margins weren’t supportive of a premium valuation – after all, 21-23% growth and (4%) FCF losses over the last four quarters has lagged the broader cloud group. However, to this team’s credit, while income statement metrics troughed, underlying execution improved, and the set-up for C2019 is better – barring acquisition-driven dilution that will be absorbed in the first half of the year. Q2 still has a healthy backlog of Tier 1 accounts slated to go live, the opportunity with Open seems to be picking up momentum, and the firm now has a product to sell into the loan origination side of the house, which nicely increases the TAM.”
According to TipRanks.com, Hynes is a top 100 analyst with an average return of 29.7% and a 72.1% success rate. Hynes covers the Technology sector, focusing on stocks such as Aspen Technology, Veeva Systems, and SPS Commerce.
Currently, the analyst consensus on Q2 Holdings is a Moderate Buy with an average price target of $67.13, a 24.9% upside from current levels. In a report released today, J.P. Morgan also maintained a Hold rating on the stock with a $62 price target.
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The company has a one-year high of $67.10 and a one-year low of $36.25. Currently, Q2 Holdings has an average volume of 372.5K.
Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2018, Barry Benton, the SVP & GC of QTWO sold 5,541 shares for a total of $364,210.
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Q2 Holdings, Inc. engages in the provision of digital banking solutions. Its services offers security, advisory, web services, custom services and end user marketing solutions. The company was founded by Robert H. Seale III on March 31, 2005 and is headquartered in Austin, TX.
