Truist Cuts BILL Holdings Price Target to $38, Warns of Slowing Growth
BILL•Truist downgraded BILL Holdings to Hold from Buy and cut its price target to $38 from $45, warning core revenue growth will slow from mid-teens to low-teens due to rising competition from Brex, Ramp and AI-driven payment solutions. It also cited reduced takeover prospects, workforce cuts and senior executive departures.
1. Brokerage Downgrade and Target Cut
Truist Securities downgraded BILL Holdings from Buy to Hold and reduced its price target to $38 from $45, signaling a more cautious outlook on the cloud-based billing software provider.
2. Growth Outlook and Competitive Pressure
The brokerage expects BILL’s core revenue growth to decelerate from the mid-teens to the low-teens percentage range as competition intensifies from rivals like Brex, Ramp and Fiserv, and AI-driven payment optimization and stablecoin infrastructure pose monetization challenges.
3. Takeover Prospects and Company Actions
Truist noted that the likelihood of a takeover catalyst has diminished due to uncertainty in software valuations, citing recent workforce reductions and senior executive departures, while maintaining forecasts for margin improvement and earnings growth through cost controls and share repurchases.
