BILL Holdings Bull Case Not Supported By Industry Data. This Analyst Turns Bearish

Shares of BILL Holdings Inc BILL started Monday’s trading session in the red zone.

The company not only has “structural limitations,” but faces increased competition from Intuit Inc INTU and there is continued macroeconomic pressure on total payment volume (TPV), according to Morgan Stanley.

The BILL Holdings Analyst: Jonathan Lee downgraded the rating for BILL Holdings from Overweight to Equal Weight, while keeping the price target unchanged at $105.

The BILL Holdings Thesis: Virtual card adoption, especially in the small and medium business segment, does not support the bull case on the company’s take-rate expansion, Lee said in the downgrade note.

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Increased competition from Intuit “challenges BILL’s go-to-market model, undermining the uniqueness and differentiation it provided and removing a key competitive advantage,” the analyst wrote.

“Ongoing debate and overhang around competition from Intuit will likely not see a resolution unless growth reaccelerates, a key driver of which is take rate expansion, limiting meaningful upside in the stock,” he added.

BILL Price Action: Shares of BILL Holdings were flat to $115.27 at the time of publishing Monday.

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