Q2 Holdings (QTWO): EBITDA Profitability On Track for Q4 - Needham

August 26, 2016 7:52 AM EDT
Get Alerts QTWO Hot Sheet
Price: $31.60 +1.12%

Rating Summary:
    7 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Needham & Company analyst, Mayank Tandon, reiterated his Buy rating on Q2 Holdings (NYSE: QTWO) after hosting investor meetings in Texas. The analyst came away incrementally upbeat on the multi-year growth opportunity as the company gains share with its leading virtual banking SaaS solution. This should help the company generate 30% top-line growth over the intermediate term while driving improved profitability as the business scales.

Although management had cautioned that some deals were pushed on their last conference call, we are not overly concerned due to the small number of deals and the modest impact on growth, which would likely not be felt until 2H17. The analyst remains confident that the company can reach EBITDA profitability by 4Q16 and sustain profitability thereafter.

No change to the price target of $34.

For an analyst ratings summary and ratings history on Q2 Holdings click here. For more ratings news on Q2 Holdings click here.

Shares of Q2 Holdings closed at $29.03 yesterday.

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