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Q2 Holdings price target raised to $60 from $46 at RBC Capital

RBC Capital raised the firm’s price target on Q2 Holdings to $60 from $46 and keeps a Sector Perform rating on the shares. The company’s Q1 results were “solid” with continued strong new and renewed client wins, backlog growth of 25%, annual recurring revenue growth of 13%, and free cash flow turning positive for the first time ever for the period,the analyst tells investors in a research note. Q2’s single modern platform are clearly resonating with financial institutions looking to grow deposits and increase efficiency, the firm added.

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