Scott Berg, an analyst from Needham, maintained the Buy rating on Bill.com Holdings (BILL – Research Report). The associated price target remains the same with $100.00.
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Scott Berg’s rating is based on several factors that highlight the potential of Bill.com Holdings despite temporary setbacks. Initially, the company exceeded expectations in terms of revenue and earnings per share, even as it slightly adjusted its full-year guidance. The drop in the stock price following an unexpected decline in AR/AP take rates is attributed to temporary foreign exchange challenges and seasonally unfavorable payment mixes.
Despite these issues, Berg sees promising signs in the company’s stable customer growth, increased transaction volume per customer, and overall transaction count. These indicators suggest that the company’s sales momentum remains strong and that broader economic challenges may be subsiding. Additionally, continued growth in Spend & Expense Total Payment Volume (TPV) and upcoming strategic investments in the second half of the year are expected to enhance the company’s growth trajectory back toward 20% core growth.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $85.00 price target.