Q2 Holdings upgraded to Outperform from Neutral at Baird

Baird upgraded Q2 Holdings to Outperform from Neutral with a price target of $39, up from $30. The shares are well off the lows but still down 10% versus the S&P since January amid concerns on the company’s banking customers, the analyst tells investors in a research note. However, Q2-specific learnings since January have been better than anticipated, including record bookings for digital banking and strong execution with incremental margins at the highest levels in years, says the firm. It assumes digital banking remains priority in 2024 and raised next-year estimates for Q2 Holdings.