Wells downgrades Bill to Underweight on ‘number of uncertainties’

Wells Fargo downgraded Bill to Underweight from Equal Weight with a price target of $60, down from $70. Wells also added the stock to its Q2 “tactical ideas list.” While the company’s’ near-term trends have stabilized, the Street is “complacent around future expectations,” the analyst tells investors in a research note. The firm believes estimates for Bill are more likely to move lower than higher in the months ahead. Wells sees a “number of uncertainties” for Bill, including added take rate questions post Visa and MasterCard settlement and the potential to expand the BofA relationship to the “back-book” becoming increasingly unlikely. The recent deterioration in Bill’s most reliable key performance indicators raise credible long-term monetization concerns, says Wells.