Analyst Daniel Jester from BMO Capital maintained a Hold rating on Bill.com Holdings and decreased the price target to $50.00 from $52.00.
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Daniel Jester has given his Hold rating due to a combination of factors impacting Bill.com Holdings. The company’s recent financial results showed a moderate upside in core revenue and EBIT margin, but the guidance for FY26 was lower than expected. This guidance reflects ongoing macroeconomic challenges affecting small and medium-sized businesses, which are expected to improve in the latter half of the year with the introduction of new products.
Despite the solid transaction volume and a slight beat in revenue expectations, there are concerns about the company’s ability to expand its take rate and subscription revenue growth. The EBIT margin remained stable, but the gross margin has been contracting for several quarters. Additionally, the company’s FY26 revenue growth guidance was conservative, aligning with modest expectations. These factors, along with a competitive environment and macroeconomic uncertainties, contribute to a balanced risk/reward scenario, justifying the Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $55.00 price target.
BILL’s price has also changed moderately for the past six months – from $54.320 to $41.630, which is a -23.36% drop .