Analysts Are Disappointed With Q2 Holdings Earnings, Cut Price Target
Needham analyst Mayank Tandon maintained Q2 Holdings Inc (NYSE: QTWO) with a Buy and lowered the price target from $62 to $35, reflecting the NT headwinds.
QTWO reported mixed 3Q results, with revenue coming below expectations as macro headwinds weighed on revenue from discretionary projects and transaction-based services.
In light of the challenging macro backdrop, QTWO provided a below-consensus 4Q outlook and noted that FY23 revenue growth is likely to be similar to FY22's growth rate.
On a positive note, 3Q was the most robust bookings performance of the year as QTWO signed one enterprise and three Tier-1 digital banking contracts, highlighting the underlying strength of the business.
Stephens & Co analyst Charles Nabhan maintained an Equal-Weight and cut the price target from $55 to $30.
While the company did announce several new business wins during the quarter, Nabhan expects shares to come under pressure following the disappointing 3Q result.
RBC Capital analyst Daniel Perlin downgraded from Outperform to Sector Perform and slashed the price target from $38 to $32.
The re-rating reflected the mixed Q3 results and lowered the FY22 outlook citing large banks deferring discretionary projects, weakness in Europe, and pressure on transaction revenues.
KeyBanc analyst Josh Beck reiterated Sector Weight.
Beck reduced his 2022 and 2023 estimates to reflect challenging market conditions as he waited for better visibility into recovery in 2023 and beyond.
Price Action: QTWO shares traded lower by 9.81% at $23.85 on the last check Tuesday.
Latest Ratings for QTWO
Date | Firm | Action | From | To |
|---|---|---|---|---|
Feb 2022 | RBC Capital | Maintains | Outperform | |
Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
Feb 2022 | Stifel | Maintains | Buy |
View More Analyst Ratings for QTWO
View the Latest Analyst Ratings
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