Cautious Hold on Bill.com Amid Uncertain SMB Spending and Macroeconomic Conditions

Morgan Stanley analyst Chris Quintero downgraded the rating on Bill.com Holdings (BILL – Research Report) to a Hold today, setting a price target of $55.00.

Chris Quintero has given his Hold rating due to a combination of factors impacting Bill.com Holdings. The initial optimism was based on expectations of improved small and medium-sized business (SMB) spending trends, a better monetization strategy, and an attractive valuation. However, recent developments have led to a reassessment of these factors, with SMB spending showing signs of weakness and macroeconomic conditions remaining uncertain.
Quintero notes that while the long-term prospects for Bill.com are positive, the near-term outlook is less certain. The company’s valuation, although still undemanding, lacks immediate catalysts to drive growth. Consequently, the price target has been adjusted to $55, reflecting a more cautious stance until there is greater confidence in a recovery in growth.

Quintero covers the Technology sector, focusing on stocks such as Onestream, Inc. Class A, Bill.com Holdings, and E2open Parent Holdings. According to TipRanks, Quintero has an average return of 21.8% and an 82.14% success rate on recommended stocks.

In another report released on June 3, KBW also maintained a Hold rating on the stock with a $54.00 price target.