- Oops!Something went wrong.Please try again later.
Shares of Q2 Holdings rose 2.8% on April 1 to close at $103.10 after the software company agreed to snap up Minneapolis-based ClickSWITCH, a digital account switching solution provider for financial institutions and fintechs. The financial terms of the deal were not disclosed.
ClickSWITCH extends Q2 Holdings’ (QTWO) ability to build strong and diverse communities by strengthening financial institutions, the company said. Furthermore, the acquisition will boost the company’s digital banking offerings, with the expansion of market share. Notably, the private company has successfully helped over 450 financial institutions and fintechs acquire primary relationships with their account holders.
Q2 Holdings CEO Matt Flake said, “A major challenge that financial institutions and fintechs face is converting their clients to become primary account holders. We believe Q2’s acquisition of ClickSWITCH will enable us to help our customers efficiently solve this pain point and drive account profitability.”
“We also believe that with ClickSWITCH we can help our customers provide their account holders with a more streamlined, frictionless experience, by offering an end-to-end digital customer acquisition, onboarding, and account switching solution,” Flake added. (See Q2 Holdings stock analysis on TipRanks)
On Feb. 23, Canaccord Genuity analyst Joseph Vafi increased the stock’s price target to $155 (50.3% upside potential) from $116 and reiterated a Buy rating.
Vafi said that the company’s building pipeline underscores its solid product portfolio. Furthermore, the analyst argues that despite the mixed results, the breadth and depth of Q2 Holdings’ full suite offerings and cross-selling were visible in 4Q signings.
Shares have exploded 67.4% over the past year, while Wall Street analysts are still bullish about the stock. The Strong Buy consensus rating boasts 10 Buy ratings versus 1 Hold rating. Looking ahead, the average analyst price target stands at $154.36, putting the upside potential at 49.7%.
On top of this, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Q2 Holdings, with 4.3% of investors increasing their exposure to QTWO stock over the past seven days.
Abbott’s BinaxNOW COVID-19 Ag Self Test Cleared For Emergency Use In US
Acuity Brands Pops 13% After 2Q Earnings Beat, Sales Disappoint
United Therapeutics Receives FDA Approval For Tyvaso Therapy; Shares Pop 15%