Wells Fargo Reasons Why It Sees 122% Upside In Bill.com

Wells Fargo analyst Jeff Cantwell listed multiple takeaways based on QTD mobile data for Bill.com Holdings, Inc BILL and Divvy web traffic.
Daily active users (DAUs) of Bill.com's mobile app QTD accelerated triple-digits Y/Y and grew over 3x vs. the same quarter a year ago.
The QTD unique visitors to Divvy's login page grew nearly 80% Y/Y with similar strength in site visits and total page views, which he saw as supportive of management's expected 120% growth in Divvy revenue for 4Q.
The strength in DAUs gave him confidence in its above-consensus 4Q TPV estimate, and he thought TPV growth could accelerate Q/Q.
Based on the data thus far, he also sees potential for upside to his and consensus 4Q revenue estimates.
A robust secular tailwind of digitization is driving Bill.com's business. It has emerged from the pandemic particularly well-positioned to capitalize on a surge in interest by businesses for high-quality digital solutions that help them manage their back offices.
He expects to see a continued strong financial performance by Bill.com over the next two years as it further expands its customer base, grows subscription-based and transaction-based revenue, and improves profitability.
He expects Bill.com to grow revenue well above peers' and above the consensus' current forecast. He expects share price appreciation.
Cantwell reiterated an Overweight on the stock with a price target of $250 (122% upside).
Price Action: BILL shares traded higher by 1.14% at $114.10 on the last check Wednesday.

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