Update shared on29 Aug 2025
Fair value Decreased 3.82%Analysts have lowered their price target for BILL Holdings to $57.45, reflecting sector underperformance, macroeconomic risks, and increased competition from Xero's Melio acquisition, despite some optimism regarding valuation and fintech sentiment.
Analyst Commentary
- Bullish analysts cite improving sentiment for the FinTech sector and expectations for solid overall earnings, believing recent underperformance creates an attractive setup.
- Bearish analysts note ongoing underperformance of the payments and IT services sector versus the S&P 500, citing 2025 investor optimism that has not materialized and a now-cloudy industry outlook.
- Trade uncertainty and consumer spending concerns are dampening the near-term outlook for the entire sector, representing key macroeconomic risks.
- The recent $2.5B acquisition of Melio by Xero Limited provides a positive valuation benchmark for BILL, implying its current market capitalization has strong comps.
- However, the Melio acquisition is expected to intensify competition and raise questions about BILL’s competitive positioning and capabilities going forward.
What's in the News
- BILL authorized a new share repurchase program of up to $300 million, to be funded with existing cash; 5.62% of shares have already been repurchased for $300 million under the prior program.
- Provided guidance for Q1 revenue between $385 million and $395 million, and FY2026 revenue between $1,589.5 million and $1,629.5 million.
- Launched BILL Supplier Payments Plus, a solution aimed at streamlining accounts receivable workflows and automating payments for enterprise suppliers, with digital payment capabilities and ERP integration.
- Announced the appointment of Rohini Jain as Chief Financial Officer, bringing experience from PayPal, eBay, Walmart, and GE; John Rettig expands responsibilities as President and COO.
- BILL was dropped from several Russell growth indices, including the Russell 1000, 2500, 3000, Midcap, and Small Cap Growth benchmarks.
Valuation Changes
Summary of Valuation Changes for BILL Holdings
- The Consensus Analyst Price Target has fallen slightly from $59.86 to $57.45.
- The Net Profit Margin for BILL Holdings has significantly risen from 1.36% to 4.47%.
- The Future P/E for BILL Holdings has significantly fallen from 257.46x to 80.99x.
Disclaimer
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