William Blair analyst Christopher Kennedy has maintained their bullish stance on QTWO stock, giving a Buy rating on October 30.
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Christopher Kennedy has given his Buy rating due to a combination of factors including Q2 Holdings’ strong financial performance and positive future outlook. The company exceeded its revenue and adjusted EBITDA guidance for the September quarter, prompting an increase in future estimates. Management has also raised its guidance for 2025 and 2026, anticipating significant growth in subscription revenue and EBITDA margin expansion.
Additionally, Q2 Holdings has authorized a substantial share buyback program, which indicates confidence in its financial health. Despite a significant drop in share price year-to-date, the stock trades at a discount compared to peers, suggesting potential value for investors. The company has demonstrated robust sales activity with record-level bookings and a solid pipeline, further supporting the Buy rating.
Kennedy covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Remitly Global, and Fidelity National Info. According to TipRanks, Kennedy has an average return of -7.2% and a 31.88% success rate on recommended stocks.