2023-05-31 09:17:57 ET
- Q2 Holdings ( NYSE: QTWO ) stock gained 3.2% in Wednesday premarket trading after BTIG analyst Matt VanVliet upgraded the digital banking technology company to Buy from Neutral due to improving momentum, especially for its commercial unit.
- "We believe the company's guidance is now conservative and much of the potential downside has been stripped out, while growth upside is more tangible than in recent years," VanVliet wrote in a note to clients.
- With its Q1 earnings release, Q2 ( QTWO ), which provides digital banking platforms to financial institutions, guided to FY2023 non-GAAP revenue of $618M-$630M , down from its earlier range of $632M-$640M.
- Q2's ( QTWO ) commercial business' comprehensive platform differentiates it from competitors with broad and deep offerings across digital banking, the analyst said.
- In addition, "as the marketplace portion of Innovation Studio reaches critical mass, the flywheel is beginning to spin with greater velocity, making the Q2 platform even stickier" and boosting the margin profile of customers overall, he added.
- VanVliet's Buy rating contrasts with the SA Quant rating of Hold and agrees with the average Wall Street rating.
- For more on QTWO's guidance, its Q1 earnings call transcript.
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Q2 Holdings upgraded to Buy at BTIG as commercial unit gains momentum