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 has given his Hold rating due to a combination of factors that present both positive and negative aspects for Bill.com Holdings. On the positive side, the company reported a strong fourth quarter with key metrics surpassing consensus estimates, such as a higher AP/AR take rate, impressive year-over-year growth in Integrated Platform TPV, and a notable increase in net customer additions. Additionally, the company announced a significant share buyback program, which could be seen as a positive signal to investors.
However, there are concerns that temper the optimism. The company’s guidance for fiscal year 2026 appears less conservative than expected, with core revenue growth projections missing consensus expectations. Furthermore, the apparent boost in transaction volume due to customers pulling forward spending ahead of tariffs raises questions about the sustainability of this growth. These mixed signals, along with the potential for downward revisions in consensus estimates, contribute to the decision to maintain a Hold rating on the stock.
In another report released today, Piper Sandler also downgraded the stock to a Hold with a $50.00 price target.