The Analyst Landscape: 6 Takes On Q2 Holdings

During the last three months, 6 analysts shared their evaluations of Q2 Holdings QTWO, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 1 1 0 0
Last 30D 1 0 0 0 0
1M Ago 2 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 1 1 0 0

Analysts have set 12-month price targets for Q2 Holdings, revealing an average target of $49.5, a high estimate of $58.00, and a low estimate of $41.00. Witnessing a positive shift, the current average has risen by 26.92% from the previous average price target of $39.00.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Q2 Holdings among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Mayank Tandon Needham Raises Buy $58.00 $50.00
Adam Hotchkiss Goldman Sachs Raises Buy $51.00 $39.00
Adam Hotchkiss Goldman Sachs Raises Buy $51.00 $39.00
Mayank Tandon Needham Raises Buy $50.00 $40.00
Arvind Ramnani Piper Sandler Raises Neutral $41.00 $30.00
Charles Nabhan Stephens & Co. Raises Overweight $46.00 $36.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Q2 Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Q2 Holdings compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Q2 Holdings's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Q2 Holdings's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Q2 Holdings analyst ratings.

Delving into Q2 Holdings's Background

Q2 Holdings Inc. is a provider of cloud-based virtual banking solutions for regional financial institutions to deliver mobile banking services to retail and commercial end-users who wish to bank anywhere and anytime. Its solutions operate on an integrated tablet-first platform which provides financial institutions a comprehensive view of account holder activity and meets the regulatory and security requirements applicable to the industry. The firm generates revenue from subscription-based arrangements for software offerings, typically for five years. A large majority of the firm's revenue is generated in the United States.

Financial Milestones: Q2 Holdings's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Q2 Holdings's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 7.06%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Q2 Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -14.95%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Q2 Holdings's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -5.25%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.97%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.24, caution is advised due to increased financial risk.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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