Truist Securities upgrades Bill.com stock to Buy on growth outlook

Investing.com - Truist Securities upgraded Bill.com Holdings Inc (NYSE:BILL) from Hold to Buy on Friday, while raising its price target to $63.00 from $50.00. The financial software company, currently valued at $5.49 billion, has demonstrated impressive gross profit margins of 84.29% and achieved revenue growth of 13.36% over the last twelve months.

The new price target represents approximately 20% potential upside from Thursday’s closing price, according to Truist’s analysis. This aligns with InvestingPro’s analysis, which suggests Bill.com is currently undervalued, with additional insights available in the comprehensive Pro Research Report.

The upgrade comes as Truist believes there is upside to Wall Street’s core revenue growth forecasts for the financial software company.

Truist also cited positive optionality resulting from new activist shareholders, noting that Elliott Management and Starboard have both built sizable long positions in Bill.com during the current quarter.

The firm expects a "catch-up trade" for Bill.com shares, which have been the worst performer in Truist’s coverage group so far this year, as the firm believes estimates have bottomed out.

In other recent news, Bill.com Holdings Inc. reported its fourth-quarter fiscal 2025 results, which showed improved key performance indicators. Despite cautious investor sentiment, transaction payment volume per customer increased by 0.4% year-over-year, and the take rate expanded by 0.25 basis points quarter-over-quarter to 0.165%. Following these results, UBS reiterated its Buy rating with a $65.00 price target, highlighting the improved metrics. Wolfe Research upgraded Bill.com to Outperform, setting a $70.00 price target, citing conservative guidance and progress in monetization strategies. Truist Securities maintained its Hold rating with a $50.00 price target, noting better-than-expected growth but potential deceleration by fiscal year 2026. BMO Capital lowered its price target to $50.00 from $52.00, maintaining a Market Perform rating, due to moderate upside in core revenue and EBIT margin. Meanwhile, KBW reduced its price target to $46.00 from $54.00, also maintaining a Market Perform rating, due to a weaker fiscal 2026 outlook amid macroeconomic uncertainty. These developments provide investors with a range of perspectives on Bill.com’s future performance.

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