JPMorgan listed Q2 Holdings , nCino and Alkami as three stocks tied to the digital banking trend that can do well. “We find the digital banking space an attractive investment arena,” analyst Ella Smith wrote to clients in a Wednesday note. Here’s what Smith sees as the outlook for each: Q2 Holdings and Alkami Smith first prefers Q2 Holdings and Alkami, which update software for customers of credit unions and regional banks. She has an overweight rating on both names. The analyst initiated Q2 Holdings with a price target of $115, which reflects 33.7% upside over Tuesday’s closing level. That would mark a recovery for the stock, as shares have dropped more than 14% in 2025. Meanwhile, Smith set a price target of $40 on Alkami, reflecting 49.1% upside. The stock has fallen more than 26% year to date. “These companies enjoy high customer retention and 5-7 year contract lengths, which support revenue visibility,” Smith said. “We view the monetization model as defensive, being based on the number of bank accounts on the respective platform, as well as the number of products a bank subscribes to.” nCino Beyond those two names, Smith also highlighted cloud banking stock nCino. The analyst has a neutral rating on the stock. Smith has a $30 price target, implying upside of 10.8%. The stock has plunged more than 19% this year, on track for its fourth losing year of the past five. The company “has a great technology stack, great customer roster, and great cross-sell opportunity,” Smith said. “However, nCino is undergoing a transition year with a lot of uncertainties.”
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