Q2 (NYSE:QTWO) Given New $68.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised Q2’s price target from $63 to $68 while maintaining an “equal weight” rating, implying 10.87% upside from the prior close.
• Analyst sentiment remains positive overall, with eight Buy ratings and four Holds; Q2 has a “Moderate Buy” consensus rating and an average price target of $74.
• Q2 exceeded quarterly expectations, reporting $0.70 EPS versus $0.68 expected and $219.77 million in revenue versus $216.86 million forecast, while revenue increased 12.6% year over year.

Q2 (NYSE:QTWO - Get Free Report) had its target price increased by Morgan Stanley from $63.00 to $68.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has an "equal weight" rating on the technology company's stock. Morgan Stanley's price objective would suggest a potential upside of 10.87% from the stock's previous close.

Several other brokerages have also recently weighed in on QTWO. DA Davidson reissued a "buy" rating and issued a $82.00 price objective on shares of Q2 in a research note on Thursday, July 23rd. UBS Group set a $68.00 target price on Q2 in a research report on Friday. Wall Street Zen downgraded Q2 from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Needham & Company LLC upped their price target on Q2 from $70.00 to $75.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Robert W. Baird set a $74.00 price target on Q2 in a research note on Thursday, April 30th. Eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $74.00.

Q2 Stock Performance

Shares of NYSE:QTWO traded up $2.26 during midday trading on Friday, hitting $61.33. 592,805 shares of the stock were exchanged, compared to its average volume of 922,169. The business's 50-day moving average price is $49.27 and its 200 day moving average price is $51.43. Q2 has a 12 month low of $40.79 and a 12 month high of $90.08. The stock has a market capitalization of $3.84 billion, a price-to-earnings ratio of 43.81 and a beta of 1.33.

Q2 (NYSE:QTWO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The technology company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. Q2 had a net margin of 10.87% and a return on equity of 17.12%. The business had revenue of $219.77 million during the quarter, compared to analyst estimates of $216.86 million. During the same quarter last year, the business earned $0.18 EPS. The firm's quarterly revenue was up 12.6% on a year-over-year basis. As a group, sell-side analysts expect that Q2 will post 1.64 EPS for the current year.

Hedge Funds Weigh In On Q2

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Headlands Technologies LLC acquired a new stake in Q2 during the 2nd quarter worth about $26,000. Measured Wealth Private Client Group LLC acquired a new position in shares of Q2 in the 3rd quarter valued at about $26,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Q2 in the 4th quarter valued at about $27,000. Root Financial Partners LLC bought a new stake in shares of Q2 during the 1st quarter valued at about $25,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in shares of Q2 by 592.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 630 shares of the technology company's stock valued at $59,000 after purchasing an additional 539 shares in the last quarter.

Q2 Company Profile

Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company's core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2's platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.

Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.

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