2023-07-10 11:45:43 ET
KBW analyst Sanjay Sakhrani downgraded BILL Holdings ( NYSE: BILL ) stock to Market Perform from Outperform, citing multiple factors from valuation to macroeconomic risks.
"Following the 40%+ increase in BILL’s stock price since the F3Q results, we see potential for near-term underperformance given a fuller valuation, rising competitive pressures, sensitivity to float income, and continued macro risks due to their disproportionate exposure to SMBs," the sell-side analyst wrote in a note dated Sunday.
All in, "we think it’s prudent to remain on the sidelines at this time."
Despite losing its bull rating, shares of the cloud-based software provider drifted up 1.9% in late morning trading.
The Market Perform rate aligns with the SA Quant system rating of Hold and diverges from the average Wall Street analyst rating of Buy.
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BILL cut to Market Perform at KBW on value, competition, macro