Oppenheimer analyst Ken Wong reiterated an Outperform rating on the shares of BILL Holdings, Inc. BILL.
BILL has seen more upmarket demand lately, notes the analyst, highlighting that the wallet share expansion opportunity is the largest driver of take rate expansion (followed by Pay by Card, International Payments, Fx). Growing wallet share should drive TPV growth above spending recovery.
Internationally, BILL has started making progress in Canada and the U.K. with Payment, the analyst adds.
Also Read: BILL Holdings Bull Case Not Supported By Industry Data. This Analyst Turns Bearish
As BILL combines the BILL and Divvy platforms into a single UI for businesses, the analyst expects some leverage in R&D and S&M (to a lesser extent).
Wong adds that the accountant channel remains understaffed, leading to a prioritization of the company's customer base.
However, BILL historically saw seasonally strong expansion trends in 4Q but expects ~flattish TPV q/q this year.
This apart, BILL has experienced strong top-of-funnel trends, but conversion times remain elongated, the analyst mentions.
Price Action: BILL shares are trading higher by 0.61% to $114.93 on the last check Thursday.
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