Q2 Holdings price target raised to $76 from $60 at RBC Capital

RBC Capital raised the firm’s price target on Q2 Holdings to $76 from $60 and keeps a Sector Perform rating on the shares. The company’s Q2 results and guidance supports the positive mix shift to higher recurring revenue growth, with subscription annual recurring revenue rising 19% and backlog up 28% y/y, the analyst tells investors in a research note. Q2 management also offered an early read into subscription ARR growth into FY25 of 15%, which is above its 3-year average target of 14% and likely indicative of the success Q2 is having in driving more expansion-based revenues, RBC added.