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Investing.com - Truist Securities reduced its price target on Bill.com Holdings Inc (NYSE:BILL) to $60.00 from $61.00 on Wednesday, while maintaining a Buy rating on the financial software provider. The new target represents approximately 24% upside from the current price of $48.50, with InvestingPro data suggesting the stock is currently undervalued based on its Fair Value assessment.
The price target adjustment follows Bill.com’s fiscal first-quarter 2026 earnings report, with Truist citing assumptions around lower net customer additions and core revenue growth as reasons for the modest reduction. Despite these concerns, the company maintained impressive gross profit margins of 83.85% in the last twelve months.
Truist slightly decreased its revenue forecasts for Bill.com, with no change for fiscal year 2026 and a 2% reduction for fiscal year 2027. The firm also adjusted its earnings per share outlook, raising fiscal 2026 estimates by 1% while reducing fiscal 2027 projections by 2%. InvestingPro data shows that 7 analysts have recently revised their earnings expectations upward for the upcoming period, suggesting confidence in the company’s near-term performance.
The investment firm noted its fiscal 2026 forecasts for Bill.com align with broader market consensus across key performance indicators. Truist’s revised $60 price target represents a multiple of 41 times its calculation of calendar year 2027 adjusted free cash flow, which includes stock-based compensation as an expense. This high multiple reflects the company’s 11.63% revenue growth over the last twelve months.
Bill.com provides cloud-based software that simplifies, digitizes, and automates complex back-office financial operations for small and midsize businesses. The company, currently valued at approximately $4.86 billion, is expected to report its next quarterly earnings on January 29, 2026. For deeper insights and additional ProTips on Bill.com, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Bill.com Holdings Inc. reported its financial results for the first quarter of fiscal year 2026, delivering an earnings per share (EPS) of $0.61. This result surpassed analyst expectations of $0.51, representing a 19.61% surprise. The company’s revenue also exceeded forecasts, reaching $395.7 million compared to the anticipated $390.75 million. Additionally, Needham reiterated its Buy rating and maintained a price target of $75.00 for Bill.com, highlighting the company’s strong execution despite challenging economic conditions. Needham noted that Bill.com experienced positive customer growth and increased transaction volume, continuing favorable trends from the previous fiscal year. These developments reflect the company’s ability to perform well in a soft macroeconomic environment. The financial services firm expressed confidence in Bill.com’s monetization outlook. These updates provide investors with insights into Bill.com’s recent performance and analyst perspectives.
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