Baird analysts upgraded Q2 Holdings (NYSE:QTWO) to Outperform with a price target of $39, up from $30 and downgraded Definitive Healthcare Corp. (NASDAQ:DH) and nCino, Inc. (NASDAQ:NCNO) to Neutral in a note to clients Monday.
The analysts said in their note that the QTWO stock is well off its lows but it is -10% vs. S&P since January and there are ensuing concerns on banking customers.
"QTWO-specific learnings since January have been better than we anticipated, including record bookings for digital banking and strong execution with incremental margins at highest levels in years. We assume digital banking remains priority in 2024E and raise next-year estimates," they wrote.
For DH and NCNO, the firm sees a "more balanced risk/reward at current valuations."
"Definitive is likely a beneficiary of an eventual better macro, but current conditions and longer enterprise sales cycles could make 2024E estimates for reacceleration harder to meet," said the analysts.
"While nCino 2024E estimates appear to be in good place, recent news around strategic review has pulled ahead NTM upside we expected," they concluded.