Bill price target lowered to $85 from $115 at KeyBanc

KeyBanc lowered the firm’s price target on Bill (BILL) to $85 from $115 and keeps an Overweight rating on the shares. The firm says its preview was mostly wrong, and the shares deserve to trade lower after the Q2 print. KeyBanc notes AP/AR TPV did accelerate, customer net adds were better than it thought, and product velocity seems to be improving. However, little to none of that matters for the stock when combined with a sequential deterioration in take rate across AP/AR and Spend & Expense. It’s hard to “walk away from this print” thinking management has the same/better visibility into take rate direction as the firm previously thought, KeyBanc adds.