Bill Holdings、Q2 Holdings在KeyBanc升级金融科技前景

Bill Holdings (NYSE:BILL) stock climbed 2.4% and Q2 Holdings (NYSE:QTWO) gained 2.8% in Wednesday premarket trading after KeyBanc upgraded both fintech stocks to Overweight from Sector Weight as part of its 2025 outlook for the sector.

While most names in analyst Alex Markgraff's coverage looked grim heading into 2024, 16 of 22 names in his list outperformed benchmarks.

For next year, the KeyBanc analyst is focusing on names that stand to benefit from macro tailwinds across consumer and small and medium-sized businesses; that have sub-sector tailwinds, such as easier regulatory and M&A environment; and potential for revenue upside powered by healthy fundamentals and continued margin expansion.

In discussing the upgrades, "BILL has been on the road to recovery and has shown a level of execution against stated initiatives that, along with our proprietary survey/checks, leave us more constructive on shares today," Markgraff wrote in a note to clients. He dismissed concerns about competition from Intuit (INTU), saying it has little bearing on Bill's (NYSE:BILL) results in the near-term. Also in the company's favor are the improving SMB backdrop and its reset of take-rate assumptions.

Regarding Q2 (NYSE:QTWO), "The quick version of our thesis — we missed a lot of the upside in this one but feel there is some 'meat' left on the bone around revenue growth acceleration, in particular with a nice call option around additive bank M&A," he said. The analyst also highlights QTWO's subscription revenue growth durability and its free cash flow conversion seems to be tracking ahead of targets.

Markgraff also names Alkami Technology (ALKT), Fiserv (FI), Intuit (INTU), and Robinhood Markets (HOOD) as key ideas in the sector.

KeyBanc's Overweight rating on Bill Holdings (BILL) aligns with the SA Quant rating of Strong Buy, and the average SA Analyst rating and average Wall Street rating, both at Buy.

The rating on Q2 (QTW) agrees with the SA Quant rating of Strong Buy and the average  Wall Street rating of Buy.

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