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Investing.com - BMO Capital has reduced its price target on Bill.com Holdings Inc. (NYSE:BILL) to $50.00 from $52.00 while maintaining a Market Perform rating. The company, currently valued at $4.3 billion, trades at $45.82, sitting above its 52-week low of $36.55 but well below its high of $100.19.
The firm’s decision follows Bill.com’s fourth-quarter results, which BMO described as "mostly consistent" with their preview expectations, showing moderate upside on core revenue and EBIT margin. The company maintains impressive gross profit margins of 84.5% and has achieved revenue growth of 14.5% over the last twelve months. According to InvestingPro analysis, Bill.com currently appears undervalued, with 8 additional exclusive insights available to subscribers.
Despite the price target reduction, Bill.com shares traded higher after hours, suggesting the market had already factored in the lowered fiscal year 2026 guidance that accompanied the results.
BMO Capital noted that Bill.com’s pathway for financial improvement in fiscal year 2026 reflects headwinds from near-term macroeconomic challenges affecting small and medium-sized businesses.
The firm expects a strengthening in the second half of the fiscal year from new products, though it cautioned these initiatives "may take time to build momentum," leading BMO to trim its fiscal year 2026 estimates.
In other recent news, Bill.com Holdings Inc. reported its fiscal fourth-quarter 2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share of $0.53, surpassing the forecasted $0.41, and reported revenue of $383.3 million, slightly above the anticipated $376.52 million. These results highlight the company’s ability to perform better than expected in the current economic climate. Meanwhile, Keefe, Bruyette & Woods (KBW) adjusted its price target for Bill.com to $46.00 from $54.00, maintaining a Market Perform rating. This adjustment follows a weaker-than-expected fiscal 2026 outlook for the company, attributed to ongoing macroeconomic uncertainties. Despite these challenges, the recent earnings report has provided a positive note for investors. The combination of these developments offers a mixed picture of the company’s current and future financial health.
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