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A Credit Suisse analyst initiated research coverage on Bill.com (NYSE:BILL) shares with an Outperform rating and a $160 per share price target.
The company is described as a “leading one-stop shop financial operations platform for small and mid-size businesses (SMBs).”
The analyst sees BILL as “one of the fastest growers in our coverage universe” as he estimates the company’s organic core revenue CAGR can hit 42% in the 2022-2024 time horizon.
“Our bullish view on Bill.com’s prospects over the medium term is supported by its large, underpenetrated SMB TAM and its best-in-class distribution strategy for reaching those SMBs efficiently,” he told investors in a note.
Moreover, the analyst is positive on BILL’s hard-to-replicate and efficient go-to market (GTM) strategy.
“We believe the company’s payments monetization efforts that began in FY ‘19 have a long runway and will remain the largest driver to total company core revenue growth with meaningful upside potential (based on our transaction revenue yield analysis). Further, we see significant upside potential from cross-sell efforts,” the CS analyst added.
BILL shares are down 42% YTD after closing at $135.08 on Friday.
