- Needham analyst Mayank Tandon maintained Q2 Holdings Inc 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.
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