DA Davidson reiterates Neutral rating on Q2 Holdings stock with $90 price target

Published 04/08/2025, 15:58
DA Davidson reiterates Neutral rating on Q2 Holdings stock with $90 price target

Investing.com - DA Davidson maintained its Neutral rating and $90.00 price target on Q2 Holdings (NYSE:QTWO) following the company’s second-quarter financial results. The company, with a market capitalization of $4.9 billion, has demonstrated solid revenue growth of ~13% over the last twelve months.

Q2 Holdings reported second-quarter results with total revenue exceeding DA Davidson’s forecast by 1% and adjusted EBITDA surpassing expectations by 8%.

Following these results, Q2 Holdings management raised the midpoint of their revenue guidance range by nearly 1% and increased the midpoint of their adjusted EBITDA guidance range by 4%.

In response to the second-quarter update, DA Davidson raised its 2025 to 2027 adjusted EBITDA forecasts for Q2 Holdings by an average of 3% each year.

Despite these positive adjustments to future earnings projections, DA Davidson maintained its Neutral rating on Q2 Holdings with the price target unchanged at $90.

In other recent news, Q2 Holdings has been in the spotlight following its second-quarter 2025 earnings report. The company reported a significant miss on earnings per share (EPS), which came in at $0.18, falling short of the forecasted $0.52. Despite this, Q2 Holdings exceeded revenue expectations, reporting $195.1 million compared to the anticipated $193.68 million. Analysts have taken note of these developments, with Cantor Fitzgerald maintaining an Overweight rating and a $110.00 price target, citing a "solid beat and raise" on revenue and EBITDA metrics. Needham also responded positively by raising its price target to $115.00 from $110.00, while maintaining a Buy rating. The firm highlighted the company’s 16.4% year-over-year subscription revenue growth and significant EBITDA margin expansion. These recent developments have drawn considerable attention from investors and analysts alike.

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