Truist Securities lowered its price target on Bill.com Holdings Inc. (NYSE:BILL) to $45 from $46 while maintaining a Buy rating on the stock.
The firm updated its financial model following Bill.com's third-quarter fiscal 2026 earnings report. Core revenue forecasts decreased slightly by less than 1% due to a slower pace of take rate expansion for the accounts payable and accounts receivable business.
Truist raised its fiscal 2027 adjusted operating income forecast by 23% and its fiscal 2027 adjusted earnings per share forecast by 27%. The increases reflect the company's 30% reduction in force and new $1 billion buyback authorization.
The firm noted that Bill.com management will provide a roadmap to reaching the Rule of 40 on next quarter's call. Street estimates currently stand at a Rule of 37 in fiscal 2028.
The new price target is based on approximately 16.0 times Truist's definition of calendar year 2027 adjusted earnings per share, which incorporates stock-based compensation as an expense.
