BILL Holdings (BILL) continues to be appealing due to its valuation, margin expansion potential, and expected stronger growth in a normalized environment, despite a delayed timeline for revenue acceleration, Oppenheimer said in a note Thursday.
According to the report, the company posted better-than-expected fiscal Q4 results but issued a cautious fiscal 2026 outlook, citing a challenging macro backdrop and slowing momentum among small and mid-sized businesses.
The firm forecasts 2026 revenue between $1.59 billion and $1.63 billion, slightly below Wall Street estimates but in line with investor expectations for slowing growth. Analysts surveyed by FactSet expect of $1.62 billion.
Operating income is estimated around $240 million to $270 million, reflecting nearly 190 basis points of margin expansion, and outlined plans for a share repurchase program of up to $300 million during the year.
CFO Rohini Jain emphasized that the outlook incorporates "incremental conservatism" amid ongoing macro uncertainty, but noted potential upside if conditions improve in the H2 of 2026, the report added.
The firm maintained it outperform rating on the stock, with a price target of $55.
Shares of BILL Holdings jumped 13.6% in recent Thursday trading.
Price: 47.38, Change: +5.75, Percent Change: +13.81
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