Truist sees Bill as ‘an attractive takeout candidate’

Truist analyst Matthew Coad notes that after Bill (BILL) delivered a strong earnings beat, Bloomberg reported that private-equity firm Hellman & Friedman has been in talks to acquire the company, and that other private-equity groups have also expressed interest. The report follows Bloomberg’s November story that Bill was exploring strategic alternatives, including a potential sale, and comes amid involvement from multiple activist investors. That said, Truist acknowledges that some investors have questioned the likelihood of a takeout given the current turbulence across the software sector. The firm thinks Bill is an attractive takeout candidate and believes that Elliott Investment Management and Starboard Value having sizable positions in the company created positive optionality for Bill shareholders. Truist has a Buy rating and a price target of $58 on the shares.