Hwangdaesung
BILL Holdings (NYSE:BILL) was downgraded at Goldman Sachs after the financial automation software company delivered mixed guidance with its Q4 earnings results.
BILL delivered Q4 earnings that topped the Wall Street consensus and announced a new share repurchase program.
However, the company said it expects 2025 non-GAAP EPS of $1.36-$1.61 (midpoint $1.49), lower than the $2.22 consensus, and revenue of $1.42B-$1.45B (midpoint $1.43B) vs. $1.44B consensus.
For Q1 2025, it expects non-GAAP EPS of $0.48-$0.51 (midpoint of $0.50), vs. average analyst estimate of $0.51 and revenue of $346M-$351M (midpoint $349M), higher than the $337.0M consensus.
Also, the investment bank said BILL is calling for significantly higher levels of investments in the coming year, and the incremental commentary around investments is believed to likely push out valuation support.
Goldman Sachs lowered its recommendation on the stock to Neutral from Buy, with a price target of $54. BILL was trading +3.00% higher Friday pre-market at $52.26, but has lost 37.81% value year-to-date.
The rating aligns with Seeking Alpha’s Quant Rating of Hold. Quant gives the stock a score of 2.66 on a scale of 5, with an A for Valuation, A for Growth, C- for Profitability, D for Momentum and C- for Revisions.
The average sell-side analysts and SA authors rating is Buy.
