Morgan Stanley Downgrades Bill.com Holdings Inc. (BILL) to Equalweight

Morgan Stanley analyst Chris Quintero downgraded Bill.com Holdings Inc. (NYSE: BILL) from Overweight to Equalweight with a price target of $55.00 (from $60.00).

The analyst comments: "Our prior Overweight thesis on BILL had been predicated on 1) Improving SMB spending trends, 2) Improved monetization strategy, and 3) Undemanding valuation (Right Strategy, Right Time; Upgrade to Overweight (January 16, 2025)). In looking at each of these elements, we come away less convinced in our prior thesis near-term and prefer to shift to Equal-weight until we garner greater conviction in a growth recovery. Longer-term, we are positive on BILL's opportunity to better expand and monetize its software platform, which we believe investors are underappreciating. We lower our price target to $55 (from $60), but see an attractive bull/bear skew of 2:1 as there is limited downside given the undemanding valuation and any evidence of a growth improvement likely results in meaningful multiple expansion."

For an analyst ratings summary and ratings history on Bill.com Holdings Inc. click here. For more ratings news on Bill.com Holdings Inc. click here.

Shares of Bill.com Holdings Inc. closed at $45.37 yesterday.

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