Here’s Why Morgan Stanley Downgraded BILL Holdings (BILL)

BILL Holdings, Inc. (NYSE:BILL) is one of the 11 Best Tech Stocks to Buy On the Dip. On June 11, Morgan Stanley analyst Chris Quintero downgraded BILL Holdings, Inc. (NYSE:BILL) to Hold while also reducing the price target from $60 to $55. The downgraded rating comes after the firm sees depreciating spending trends in the small and medium-sized business.

Chris Quintero noted that the previous improved sentiment around BILL Holdings, Inc. (NYSE:BILL) was based on the optimism that small and medium-sized businesses will see improved spending, better monetization strategies, and attractive valuations. However, recent market developments indicate weakness in all these factors. The analyst highlighted that while the long-term prospects of BILL Holdings, Inc. (NYSE:BILL) remain positive, the near-term outlook remains questionable, thereby undermining its immediate growth catalyst.

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The company released its fiscal third quarter results for 2025 on May 8. The total revenue for the quarter grew 11% year-over-year to $358.2 million, whereas the core revenue grew 14% to $320.3 million. BILL Holdings, Inc. (NYSE:BILL) revised its full-year outlook downwards and now expects FY25 revenue to grow around 12% to 13% down from the previous guidance of 13% to 14% growth.

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