SunTrust Robinson Humphrey analyst Terry Tillman has downgraded his rating on Q2 Holdings Inc.'s stock to "hold" from "buy."
The analyst left his price target on the stock unmoved at $60.
Q2 Holdings' stock has fared strongly over the past month, year-to-date and during the last 52 weeks, the analyst wrote. After Q2 Holdings' first-quarter results, the analyst made modest revisions to his estimates on the company's stock, and combined with share price gains above 10%, the risk/reward on Q2 Holdings stock is now "more balanced," Tillman wrote.
Tillman believes Q2 Holdings' strength with Tier 2 banks and credit unions will persist, with the Tier 1 pipeline building ahead of selling season in the fourth quarter of 2017. Revenue growth will "re-accelerate" in 2019, the analyst wrote.
He left his EPS estimates for the company unchanged at a loss of 2 cents for 2018 and a gain of 8 cents for 2019.