Xero Bull Sees Opportunity Enhanced by Stock Weakness
Dow Jones
3 hours ago
2242 GMT - Xero's bull at Citi opens a positive catalyst watch ahead of the accounting-software provider's first-half result, telling clients that recent share-price weakness represents an enhanced buying opportunity. With an unchanged "buy" recommendation on the stock, analyst Siraj Ahmed writes in a note that he expects strong revenue growth, including 44% at its Melio unit. Ahmed anticipates strong cost control that could put Xero on track to beat margin expectations for its full fiscal year. Citi cuts its target price 19%, to 91.55 Australian dollars, on lower valuation multiples across peers including Intuit. Shares are at A$56.10 ahead of the open.
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