Needham raised the firm’s price target on Q2 Holdings to $50 from $40 and keeps a Buy rating on the shares. The firm contends that the company’s subscription revenue will steadily grow at a low-teens clip in the coming years, faster than transaction and services revenue, and will be the key driver for the shares, the analyst tells investors in a research note. That growth rate will also be accretive to margins as the mix shift further tilts towards subscription revenue, Needham added.
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