By Liz Moyer
Investing.com -- Bill Com Holdings Inc (NYSE:BILL) is in a solid competitive position as a provider of financial automation software to small and medium sized businesses, with the market in the early stages of digitization, leading analysts at KeyBanc to raise their price target on the stock.
There is room in the space for more than one company to scale “with minimal competitive pressure,” the analysts wrote in a note.
KeyBanc Capital Markets analysts raised their price target to $130 from $125, keeping their overweight rating on the stock. That raised price target implies a gain of about 13% from current levels.
Shares of Bill.com were down nearly 4% on Monday. They are up 5.5% for the year so far.
The analysts said they expect competitors will “focus on different swim lanes,” underpinned by different accounting software partners. The bull case argues that the business offers attractive unit economics that will hold strong, they said, with room for annual recurring revenue expansion. They also said transactional revenue will prove to be “resilient in a period of macro weakness.”
Bill.com is scheduled to report earnings for its second fiscal quarter on Thursday. Wall Street is forecasting revenue of $244 million.