Initiate At Buy: Risk-Reward Skews To Upside Following Underperformance

Research evidence excerpt

Initiate At Buy: Risk-Reward Skews To Upside Following Underperformance

Software

BILL Holdings

TD SECURITIES (USA) LLC INITIATING COVERAGE

June 22, 2026

Price: $32.47 (06/18/2026) Initiate At Buy: Risk-Reward Skews To Upside

Price Target: $43.00 Following Underperformance

BUY (1)

ESG SCORE: 65/100

Jared Levine, CFA THE TD COWEN INSIGHT

646 562 1431

We initiate on BILL with a Buy rating and a $43 PT based on 9.0x EV/FCF (CY27E). BILL is

jared.levine@tdsecurities.com

a leading accounts payable, accounts receivable, and expense management solutions

Bryan C. Bergin, CFA vendor for SMBs serving a large, growing market. Improving fundamentals & execution

646 562 1369 expected warrant multiple expansion against muted investor sentiment following recent

bryan.bergin@tdsecurities.com

underperformance in shares (-40% YTD).

Key Data

Symbol NYSE: BILL Steadier Trajectory for Shares on Horizon

Beta: 1.20 We anticipate a steadier upward trajectory for shares on the horizon driven by improving

52-Week Range: $56.31-$32.13 fundamentals & execution. Shares of BILL have been volatile in recent years amid some

Market Cap: $3.2B challenges with managing expectations, a deceleration in growth, declining interest rates, the

Net Debt (MM): $(397.9) involvement of multiple activist investors, and the broader AI disrupting software narrative.

Cash/Share: $2.90 We see several potential near-term catalysts: the upcoming 4Q print, in which it is expected

Dil. Shares Out (MM): 112.7 to provide a framework for Rule of 40 & GAAP margin expansion; an investor day; and likely

Enterprise Value $3,260.8 beat & raise performances with quarterly earnings. We also believe there should be some

(MM):

support in shares from active share repurchases with its current authorization that has $1.0B