Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Fade the rally in this software stock: Wells Fargo

admin by admin
October 21, 2024
in Stock
0
Fade the rally in this software stock: Wells Fargo
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Investing.com — Wells Fargo analysts urged caution toward Bill.com Holdings (NYSE:BILL) in a note Monday, despite signs of improved business spending, saying they are willing to fade the recent rally in the software stock.

The bank maintains an Underweight rating and price target of $45 a share on the stock, expressing doubts about the company’s near-term profitability and long-term growth initiatives.

While the company’s recent fourth-quarter performance reflected strength and spending among small and medium-sized businesses (SMBs) showed promise, Wells Fargo remains skeptical about BILL’s multi-year growth strategy.

“We remain cautious around this ‘show me story’ to return to >20% core rev growth in FY26,” said the bank.

A major concern stems from BILL’s new $45 million investment into virtual cards, aimed at improving take rates and driving higher transaction volumes.

However, the analysts question whether these efforts will be effective: “With take rate under the microscope for over a year, we question (a) the effectiveness of the take rate expansion levers at management’s disposal and (b) BILL’s ability to return to >20% ‘core’ growth in FY26.”

Additionally, Wells Fargo is wary of BILL’s operating leverage prospects, particularly after recent incremental investments forced investors to lower EBIT expectations.

“We remain skeptical around BILL’s terminal margin profile and see complacent margin modeling by the Street,” they wrote.

Though Wells Fargo acknowledges an uptick in B2B spending that could boost revenue and volumes in the company’s first fiscal quarter, the analysts see competitive risks looming.

Wells Fargo believes the company’s guidance is more realistic than optimistic and recommends maintaining a cautious stance. With shares down 29% year-to-date and skepticism about BILL’s future growth, they believe investors should remain cautious.

This post appeared first on investing.com

Previous Post

Canada Goose cut to sell at Goldman Sachs on ‘less attractive risk/reward’

Next Post

Creditors challenge hedge fund’s bid for Citgo Petroleum in court

admin

admin

Next Post
Creditors challenge hedge fund’s bid for Citgo Petroleum in court

Creditors challenge hedge fund’s bid for Citgo Petroleum in court

Trending News

Nvidia shares slip as China opens antitrust probe over Mellanox acquisition

Nvidia shares slip as China opens antitrust probe over Mellanox acquisition

December 9, 2024
How billionaire Caltagirone could influence Italy’s banking M&A wave

How billionaire Caltagirone could influence Italy’s banking M&A wave

April 14, 2025
Coinbase secures regulatory approval for Argentina expansion

Coinbase secures regulatory approval for Argentina expansion

January 29, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.