Q2 Holdings (QTWO – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Michael Infante from Morgan Stanley maintained a Hold rating on the stock and has a $95.00 price target.
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Michael Infante has given his Hold rating due to a combination of factors impacting Q2 Holdings. Despite a promising performance with subscription ARR growth exceeding expectations and the company achieving its second-best bookings quarter in history, there are concerns about the potential deceleration of growth. Management’s forecast for subscription revenue growth in 2026 indicates a normalization to 13% year-over-year, which is lower than previous expectations.
Infante acknowledges the favorable demand trends and the company’s ability to raise its ’24-’26 subscription revenue CAGR to 15%, but he remains cautious about the future. The focus is now on near-term execution and whether the preliminary growth target for 2026 will be conservative, especially in a higher interest rate environment. As such, while there is room for optimism, the Hold rating reflects the need for careful observation of the company’s performance in the coming quarters.
In another report released today, Citi also maintained a Hold rating on the stock with a $100.00 price target.