Compass Point starts Q2 Holdings at Buy on above industry average growth

Compass Point analyst Dominick Gabriele initiated coverage of Q2 Holdings with a Buy rating and $91 price target. The firm views Q2 as “a growth stock that is taking market share,” noting that it expects “core” year-over-year revenue growth in FY24 and FY25 of 10.7% and 12.1%, respectively, which compares to the industry average of about 5%. The stock is up about 74% year-to-date, so “clearly investors are catching on to the momentum in QTWO‘s business model,” but the firm expects consensus beats and raises, the analyst added.