Q2 Holdings price target lowered to $42 from $45 at Raymond James

Raymond James lowered the firm’s price target on Q2 Holdings to $42 from $45 and keeps an Outperform rating on the shares. Raymond James doesn’t believe the underlying trends are as bad as headline growth suggests with the loss of an unprofitable 7-figure customer and weaker transactional trends weighing on what was a record subscription bookings quarter, the analyst tells investors in a research note. While the 2023 growth outlook implies a headline deceleration, it is well-supported by the +14% y/y ARR growth exiting 2022 with core subscription trends above those levels, the firm says.