JPMorgan Highlights Key Stocks in Digital Banking and Fashion

NEW YORK, NY — JPMorgan has identified several stocks poised for growth in the digital banking sector and luxury fashion market. Analyst Ella Smith featured Q2 Holdings, nCino, and Alkami in a Wednesday note to clients, suggesting that these companies represent attractive investment opportunities.

Smith gives an overweight rating to both Q2 Holdings and Alkami, firms that provide software updates for credit unions and regional banks. She set a price target of $115 for Q2 Holdings, indicating a potential upside of 33.7% from its closing level on Tuesday. Q2 Holdings’ shares have fallen more than 14% this year.

For Alkami, Smith established a price target of $40, suggesting a 49.1% upside, despite its shares dropping by over 26% year-to-date. “These companies enjoy high customer retention and 5-7 year contract lengths, which support revenue visibility,” Smith explained.

nCino, another cloud banking stock, received a neutral rating from Smith, who set a price target of $30. This target indicates a 10.8% increase, although nCino’s stock has declined more than 19% this year. Smith noted, “nCino is undergoing a transition year with a lot of uncertainties.”

In the luxury fashion sector, JPMorgan also reiterated an overweight rating for Tapestry, parent company of Coach. Analyst Matthew Boss highlighted Coach’s potential growth as a driver for Tapestry, setting a price target of $104, which reflects a 32% upside from its recent closing price of $78.91.

Boss pointed out that Tapestry’s efforts to attract younger customers have gained momentum, which could help offset declines among price-sensitive buyers. “New customer cohorts are transacting at higher rates and returning to the brand more frequently,” Boss stated.

Overall, JPMorgan’s analysis suggests that both the digital banking space and the luxury brand market hold promising opportunities for investors looking for growth.