BMO Capital raised its price target on BILL Holdings (NYSE:BILL) to $52 from $47 while reiterating a Market Perform rating, citing cautious optimism amid ongoing macroeconomic headwinds and mixed growth signals. This adjustment follows the company’s Q3 earnings beat yesterday.

The firm noted that fiscal 2025 has been a year of strategic investment for Bill.com, aimed at reigniting core growth to approximately 20% annually. However, recent trends in customer spending and monetization during the third fiscal quarter suggest that a full rebound may take longer than expected, likely pushing meaningful acceleration into fiscal 2026.

While BMO trimmed estimates across several key performance metrics, it pointed to pricing initiatives and new offerings—such as enhanced ACH—as potential growth drivers. Additionally, the firm highlighted stronger-than-expected free cash flow generation as a positive factor supporting its revised valuation.