Bill price target raised to $140 from $110 at Deutsche Bank

Deutsche Bank analyst Bryan Keane raised the firm’s price target on Bill to $140 from $110 and keeps a Buy rating on the shares. After warning about weaker volume growth earlier in fiscal 2023, Bill’s total payment volume trajectory appears to have stabilized and looks to be tracking slightly above current estimates, the analyst tells investors in a research note. The firm says the company remains in the early stages of its small business business-to-business penetration journey and that expectations are “sufficiently conservative” in both Q4 and fiscal 2024. It thiknks Bill’s ad valorem payment rates can continue to expand and that adjusted operating margins will surprise to the upside over the next few years.