0039 GMT - Accounting-software provider Xero is downgraded to accumulate, from buy, by Morgans as it weighs the impact of higher interest rates on tech stocks. "We now apply a 20% discount to our valuation and set our target price at A$85.00/share, from A$111.00/share," Morgans says. This discount reflects a view that it could take time to see the boost to Xero's value from the Melio acquisition and how the company can benefit from AI, rather than be disrupted by it, Morgans says. It's also alert to the potential for more interest-rate rises in the U.S. and Australia. "We appreciate it is challenging for management to quickly subjugate the bear points and may require a number of clear data points," Morgans says. Xero falls 0.5% to A$69.86. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

July 13, 2026 20:39 ET (00:39 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.