Stifel Reduces PT on Q2 Holdings (QTWO) Stock

Q2 Holdings, Inc. (NYSE:QTWO) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 15, Stifel reduced the price target on the company’s stock to $90 from $110, while keeping a “Buy” rating, as reported by The Fly.

As per the analyst, the company’s stock has underperformed the broader software group ever since the US Fed announced a rate cut in September. Furthermore, the analyst went on to add that, during the previous rate cuts, management emphasized that a reduced rate environment could act as a catalyst for the technology investment. This is because net interest margins tend to fall and banks focus on becoming more efficient and effective while, at the same time, gathering deposits.

Elsewhere, Q2 Holdings, Inc. (NYSE:QTWO)’s management highlighted that, considering the strength of the execution and a strong pipeline, the company remains confident in its ability to deliver on the profitable growth strategy for the remainder of the year.

Conestoga Capital Advisors, an asset management company, released its Q3 2025 investor letter. Here is what the fund said:

“Q2 Holdings, Inc. (NYSE:QTWO) provides cloud-based digital banking and lending solutions to financial institutions in the U.S. and abroad. QTWO’s shares were pressured by investors’ concerns about information technology spending by regional banks and credit unions and company specific issues. With respect to the company specific issues, the company discussed a slightly elevated customer churn during 2Q25. The elevated churn was due to an unfavorable mix of M&A and some point solution customers not renewing its contracts. The company said that is still comfortable with sub 5% overall churn for 2025. The company is well positioned to achieve its 13% subscription revenue target for 2025 and continues to see improved profitability and cash flow.”

While we acknowledge the potential of QTWO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.