William Blair analyst Andrew Jeffrey has maintained their neutral stance on BILL stock, giving a Hold rating on September 8.
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Andrew Jeffrey has given his Hold rating due to a combination of factors affecting Bill.com Holdings. Despite the recent interest from activist investors like Elliott Management and Starboard Value, which could potentially lead to a sale of the company, BILL’s stock has underperformed significantly this year. The company’s shares have fallen nearly 40%, contrasting with the broader market’s gains and other fintech stocks.
Jeffrey is cautious about the competitive landscape and the uncertainties surrounding payment monetization, which could hinder BILL’s growth. Although BILL has a strong position in the B2B market, the analyst suggests that investors might find better opportunities in other fintech companies like Affirm, SoFi, Coinbase, and Block. Furthermore, while there is potential for cost savings and increased operating leverage, aggressive cost-cutting could lead to market share loss amid rising competition. Therefore, Jeffrey advises investors to be prudent and consider these risks before investing in BILL.
According to TipRanks, Jeffrey is a 5-star analyst with an average return of 14.5% and a 64.10% success rate. Jeffrey covers the Technology sector, focusing on stocks such as Affirm Holdings, Block, and Fiserv.
In another report released on September 8, Morgan Stanley also maintained a Hold rating on the stock with a $55.00 price target.