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Investing.com - Wolfe Research upgraded Bill.com Holdings Inc (NYSE:BILL) from Peerperform to Outperform on Thursday, setting a price target of $70.00. The stock, currently trading at $52.93, has shown strong momentum with a 13% gain over the past week. According to InvestingPro analysis, the company appears undervalued based on its proprietary Fair Value model.
The upgrade reflects Wolfe Research’s view that Bill.com has issued conservative guidance and is making progress on accounts payable and accounts receivable monetization strategies. The firm also cited potential incremental partnerships for the company’s Embed platform as a positive factor. The company maintains impressive gross profit margins of 84%, and InvestingPro data reveals it holds more cash than debt on its balance sheet. InvestingPro subscribers have access to 12 additional key insights about Bill.com’s financial health and growth prospects.
Wolfe Research expressed confidence in Bill.com’s ability to sustain customer additions while noting the involvement of activist and private equity investors that could bring greater cost discipline to the organization.
The research firm believes these factors could lead to "a new trajectory for BILL with a better top-line and greater balance of growth and profitability," potentially driving upside to future estimates and multiple expansion with successful execution.
The $70 price target, which represents approximately 32% upside from Wednesday’s closing price, is based on 4-5 times enterprise value to calendar year 2027 estimated gross profit, which Wolfe Research states is "consistent with durable mid-teens growers across FinTech/SaaS."
In other recent news, Bill.com Holdings Inc. reported its fiscal fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.53, compared to the forecasted $0.41. The company also exceeded revenue projections, reporting $383.3 million against an anticipated $376.52 million. UBS has reiterated a Buy rating with a $65 price target, citing improved key performance indicators and a notable increase in transaction payment volume per customer. Truist Securities maintained a Hold rating with a $50 price target, acknowledging better-than-expected growth but noting potential deceleration factors for fiscal year 2026. Meanwhile, BMO Capital lowered its price target to $50, maintaining a Market Perform rating, due to macroeconomic headwinds. Keefe, Bruyette & Woods also adjusted its price target downward to $46, attributing this to a weaker fiscal 2026 outlook amid ongoing macro uncertainty. These developments reflect a mixed sentiment among analysts, with some highlighting positive performance metrics and others expressing caution regarding future projections.
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