Needham & Company Assumes Q2 Holdings (QTWO) at Buy

Needham & Company analyst Mayank Tandon assumes coverage on Q2 Holdings (NYSE: QTWO) with a Buy rating and a price target of $34.00.

Tandon commented, "We are assuming coverage of Q2 with a BUY rating and a $34 target. We believe Q2 is well positioned to benefit from the increased demand for virtual banking solutions (online and mobile) from regional and community financial institutions (RCFIs). With a large and growing TAM, still relatively low market penetration, and the leading Cloud-based front-end banking solution and potential to gain share, we believe the company has a long growth runway. We estimate Q2 can generate 30%+ revenue growth over the intermediate term while leveraging the fixed cost base to drive strong multi-year margin expansion. We see Q2 as a good fit for small-cap growth-oriented portfolios seeking exposure to an open-ended growth story with a highly visible revenue stream."

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 $27.86 yesterday.

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