- Bill.com ( NYSE: BILL ) stock slipped as much as 1.8% in Friday premarket trading even after Citi analyst Andrew Schmidt started coverage of the company with a Buy rating, calling it a scarce pure-play on business-to-business commerce digitization and intelligence for small businesses.
- The company's effective SMB distribution and a B2B network of over 4.7M are "difficult-to-replicate growth assets" that "support myriad ways to win," the analyst wrote in a note.
- At the same time, he pointed out that BILL "has an attractive, higher-growth financial model and is profitably scaling," despite near-term macro challenges such as rising borrowing costs for SMBs.
- Schmidt's Buy rating diverges from the Quant system's Hold rating but agrees with the average Wall Street analyst's Buy rating.
- Seeking Alpha contributor GS Investing also praised Bill.com's ( BILL ) distribution strategy, but recommended investors to wait for an improved macro environment before jumping into the stock.
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Bill.com lands bull rating from Citi given its 'difficult-to-replicate growth assets'