Key Stats for BILL Holdings Stock
- Price Change: +37.3%
- Current Price: ~$49
- Advanced Model Target: $74
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What Happened?
Shares of BILL Holdings, Inc. (BILL) skyrocketed 37.3% to close at $49 on Friday, delivering one of the biggest single-day gains in the company’s history.
The catalyst was a “perfect quarter” where the company beat on both the top and bottom lines, reporting a 14% earnings surprise that crushed Wall Street estimates.
Investors were particularly encouraged by the 17% growth in “core revenue”, which strips out volatile interest income and focuses on the fees generated from payment processing.
This metric proves that small and medium-sized businesses (SMBs) are still spending heavily on automation, dispelling fears of a recessionary slowdown in the B2B sector.
The company also raised its full-year guidance, signaling confidence that the momentum will continue into the back half of 2026.
Analysts at Jefferies upgraded the stock, calling the quarter a “game changer” that marks the end of the post-pandemic hangover for fintech stocks.
Before this rally, BILL had been trading at a steep discount to its historical valuation, making it a prime candidate for a “short squeeze” as bears rushed to cover their positions.
With the stock now reclaiming key technical levels, the focus shifts to whether BILL can sustain this growth rate and return to its former glory as a high-flying compounder.
See analysts’ growth forecasts and price targets for BILL Holdings stock (It’s free!) >>>
Is BILL Holdings Undervalued Today?
During the earnings call, CEO René Lacerte attributed the success to the company’s relentless focus on execution.
He stated: “We delivered accelerated growth and expanded margins… reflecting the strength of our operating model and the compounding advantage of our platform.”
This comment highlights the operating leverage in the business; as they scale, costs grow slower than revenue, driving massive profitability.
Regarding the network effect, he added: “Even amongst the largest 10,000 suppliers in our network… it’s a really big opportunity for us.”
Management believes that their proprietary network of millions of businesses creates a moat that competitors cannot easily replicate.
Read the full BILL Transcript on TIKR to see the Growth Strategy >>>
According to TIKR’s Advanced Valuation Model, the stock is still significantly undervalued even after the 37% pop.
- Target Price: $74
- Current Price: ~$49
- Potential Upside: +50.3%
Valuation Model Deep Dive
The investment case for BILL is a “Growth at a Reasonable Price” (GARP) play.
The model suggests that the market was pricing BILL for failure, and is now scrambling to reprice it for success.
- The Fair Value Gap: At $49, the stock trades well below the $74 target, implying another 50% upside as the multiple expands to match the growth rate.
- The Growth Reality: The model forecasts a robust 31.6% Revenue CAGR (3-year historical), proving that the company can grow through various economic cycles.
- The Profitability Check: With Net Income Margins at 18.9%, BILL has transformed from a cash-burning startup into a profitable powerhouse.
If BILL can continue to execute on its core payments business while expanding into new verticals like expense management, the path to $74 is clear.
Conclusion: The growth engine is back. With a 50.3% upside potential to $74, BILL Holdings offers a compelling opportunity for investors to own a category leader that has just proven it is back in growth mode.
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How Much Upside Does BILL Holdings Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
