Analyst Bradley Sills of Bank of America Securities reiterated a Buy rating on Bill.com Holdings (BILL – Research Report), with a price target of $60.00.
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Bradley Sills has given his Buy rating due to a combination of factors that suggest a positive outlook for Bill.com Holdings despite some challenges. The company reported mixed results for the first quarter, with a slight decline in total payment volume and transaction revenue due to reduced spending by small and medium-sized businesses. However, the take rate showed improvement, driven by increased volume in emerging products and reduced foreign exchange losses.
Looking ahead, the guidance for the fourth quarter indicates a continuation of macroeconomic pressures but suggests a better-than-expected revenue growth of 13% year-over-year. The company is also expected to achieve margin expansion, indicating leverage from scaling its core revenue. Encouragingly, the monetization trends are improving, with initiatives to enhance the ad valorem mix beginning to yield results. Despite potential challenges in the SMB payments environment, the stock’s current valuation presents limited downside risk, supporting the reiterated Buy rating and a price objective of $60.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $55.00 price target.
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