Q2 Holdings price target raised to $58 from $50 at Needham

Needham raised the firm’s price target on Q2 Holdings to $58 from $50 and keeps a Buy rating on the shares. The company’s Q4 results exceeded expectations on both the top and bottom line on the back of healthy 16.5% subscription revenue growth and increased efficiencies, the analyst tells investors in a research note. Q2 Holdings also provided a solid FY24 guide and introduced new 3-year targets which call for 14% subscription revenue growth and 300-400 bps of EBITDA margin expansion annually from 2024 through 2026, the firm added.