BILL (BILL) should benefit from a sharper focus on higher-value customers, deeper payment monetization and stock buybacks, as concerns around slowing customer growth and competition appear manageable, UBS Securities said in a note Wednesday.
The investment firm said it expects BILL to sustain core revenue growth in the low double digits to the mid-teens, and grow earnings faster than revenue as margins expand and buybacks continue.
The shift toward customers with higher payment volumes and average revenue per user is underappreciated by investors, while artificial intelligence offers upside without being essential to the outlook, the investment firm said.
Net customer additions slowed to about 600 in fiscal Q1 and total payment volume growth moderated to 12% year-over-year from the low 20s, though the sales reorganization wrapping up by the end of 2026 is expected to support a revenue growth ramp in H2 fiscal 2027, according to the note.
UBS Securities has a buy rating on the stock and raised its price target to $64 from $60.
Price: 53.86, Change: +0.12, Percent Change: +0.22
