Analyst Chris Quintero from Morgan Stanley maintained a Hold rating on Bill.com Holdings and keeping the price target at $55.00.
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Chris Quintero’s rating is based on several factors influencing Bill.com Holdings’ current market position and future prospects. One of the primary considerations is the recent involvement of activist investor Starboard Value, which has acquired an 8.5% stake in the company. Starboard’s intention to engage with management and nominate directors to the board suggests potential changes that could lead to value creation, yet the outcome of these efforts remains uncertain.
Additionally, Bill.com Holdings has been underperforming compared to its peers in the SMID-cap software sector, with its stock trading at lower valuation multiples. The company’s margin profile, although improving, still lags behind similar companies. While there are areas for potential improvement, such as monetization strategies and aligning with durable market trends, these factors contribute to the Hold rating as they indicate both opportunities and risks in the company’s future performance.
In another report released on September 6, TR | OpenAI – 4o also downgraded the stock to a Hold with a $56.00 price target.