BTIG has reaffirmed a Buy recommendation and maintained a $60.00 price target on Bill.com Holdings Inc. (NYSE: BILL) as the company approaches its second-quarter fiscal 2026 earnings report scheduled for February 5. The stock traded at $43.17 at the time of the note, having fallen 12.52% over the past week and 55.39% over the prior 12 months, according to InvestingPro data.
Analyst rationale and valuation
BTIG cites several factors underpinning its positive view. The research firm sees Capital One’s acquisition of Brex as a source of valuation support for Bill.com and believes the company can materially improve its Rule of 40 metric - a combined measure of growth and profitability often used to assess software and SaaS-related businesses. BTIG expects Bill.com’s upcoming revenue print to fall in line with company guidance, but the firm expresses caution about the pace of customer additions while the company implements go-to-market changes.
On valuation, BTIG describes Bill.com as attractively priced at about 3x FY26E EV/GP and 15x EV/EBITDA. Those multiples are evaluated alongside Bill.com’s reported 83.85% gross profit margin and analysts’ expectations that the company will be profitable this year. BTIG also flags the possibility of another sizable bottom-line beat, while acknowledging that investor expectations for sustained profitability have risen.
Margins, buybacks and margin expansion forecasts
The firm highlights Bill.com’s high gross-profit percentage and management’s recent actions, noting that company leadership has been aggressively repurchasing shares, according to InvestingPro data. BTIG projects mid-teens revenue growth for Bill.com over the coming years and forecasts a substantial expansion in EBIT margins - a 720 basis-point increase between fiscal 2025 and fiscal 2027, on a basis that excludes float revenue. Those margin dynamics are central to BTIG’s upside scenarios.
Strategic scenarios and activist interest
BTIG outlines multiple constructive outcomes for investors, referencing a company note titled "What Could an Activist See in BILL." The scenarios include continued value creation through operational execution as a public company or via strategic alternatives, implicitly recognizing that activist engagement could shape near-term strategic decisions.
That activist dimension is already visible. Barington Capital Group has publicly pressed Bill.com to reduce costs and to evaluate strategic options, including a potential sale, citing concerns about "slowing fundamentals" and an "inability to deliver operating profitability." Barington has accumulated a $25 million stake and is engaging with the board. The firm joins other known activist investors in the shareholder base, including Elliott Investment Management and Starboard Value LP.
Governance updates
At the company’s 2025 annual meeting, shareholders elected four directors to serve until the 2028 annual meeting: Natalie Derse, David Hornik, Beth Johnson and Allie Kline. Those board changes occur amid heightened scrutiny from activists and may influence strategic direction.
Other analyst moves
Analysts beyond BTIG have also adjusted their outlooks. Needham reaffirmed a Buy rating and set a $75 price target, pointing to positive industry feedback and expectations for increased business spending in 2026. Truist Securities maintained a Buy rating while trimming its price target to $60 following Bill.com’s fiscal first-quarter 2026 earnings report; Truist said the change reflected assumptions of lower net customer additions and weaker core revenue growth.
What to watch into earnings
With the earnings release three days away, investors will be watching revenue versus guidance, customer-growth metrics amid go-to-market realignment, and margins relative to BTIG’s projected trajectory. The firm’s view that the stock appears undervalued - as reflected in InvestingPro’s Fair Value assessment - aligns to some extent with BTIG’s $60 target, though investor sentiment has already elevated expectations for profitability.
Key takeaway
BTIG’s reiteration of a Buy rating and $60 target emphasizes margin strength, potential for profitability improvement and strategic optionality as catalysts ahead of Bill.com’s upcoming quarterly report. That view sits against a backdrop of activist involvement, recent board elections and mixed analyst revisions.