Analyst Expectations For Q2 Holdings's Future

In the last three months, 12 analysts have published ratings on Q2 Holdings QTWO, offering a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 1 4 0 0
Last 30D 0 0 1 0 0
1M Ago 1 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 5 1 3 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $63.5, a high estimate of $76.00, and a low estimate of $50.00. This upward trend is evident, with the current average reflecting a 14.25% increase from the previous average price target of $55.58.

price target chart

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Q2 Holdings. The following summary 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
Peter Heckmann DA Davidson Raises Neutral $76.00 $65.00
Terry Tillman Truist Securities Maintains Buy $68.00 $68.00
Terry Tillman Truist Securities Raises Buy $68.00 $65.00
Peter Heckmann DA Davidson Raises Buy $65.00 $58.00
Arvind Ramnani Piper Sandler Raises Neutral $61.00 $47.00
Mark Palmer BTIG Raises Buy $60.00 $48.00
James Faucette Morgan Stanley Raises Equal-Weight $50.00 $40.00
Adam Hotchkiss Goldman Sachs Raises Buy $59.00 $52.00
Matthew Hedberg RBC Capital Raises Sector Perform $60.00 $46.00
Terry Tillman Truist Securities Raises Buy $65.00 $60.00
Jon Vruwink Baird Raises Outperform $65.00 $60.00
Mayank Tandon Needham Raises Buy $65.00 $58.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Q2 Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Q2 Holdings compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of Q2 Holdings's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Q2 Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Q2 Holdings analyst ratings.

Get to Know Q2 Holdings Better

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. A large majority of the firm's revenue is generated in the United States.

Key Indicators: Q2 Holdings's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Q2 Holdings showcased positive performance, achieving a revenue growth rate of 8.17% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -8.36%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Q2 Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.03%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Q2 Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.14%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Q2 Holdings's debt-to-equity ratio surpasses industry norms, standing at 1.17. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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

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