BUZZ - Citi launches "positive catalyst watch" on Xero, expects upside potential for its fiscal year profit margin

路透社2026/10/07 22:21

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On October 7 – Citi analysts maintained a "Buy" rating on Wellington-based Xero (XRO.AX), with a target price of AUD 91.55. In light of the recent share price weakness, the brokerage initiated an active catalyst watch ahead of the H1 financial results. H1 revenue is expected to see strong growth, including contributions from the recent acquisition of Melio. The software company acquired small business bill payments platform Melio in 2025 for up to USD 3 billion. FY2027 adjusted EBITDA is forecast to reach the upper end of Xero's guidance range (NZD 860 million to NZD 920 million). According to data compiled by London Stock Exchange Group (LSEG), 11 out of 13 analysts have a "Buy" or higher rating on the stock, while 2 have a "Hold" rating. The median target price is AUD 118.5. As of the previous trading day's close, the share has declined 50.8% year to date. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. As automated translation may be inaccurate or lack context, Reuters does not guarantee the accuracy of automated translations and provides them solely for readers' convenience. Reuters will not be liable for any damage or loss caused by the use of the automated translation feature.)

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October 7 - ** Citi analysts maintain a "Buy" rating on Wellington-based Xero (XRO.AX), with a target price of A$91.55

** Given the recent weakness in share price, the brokerage has initiated a proactive catalyst watch ahead of the H1 financial results

** H1 revenue is expected to achieve robust growth, including contributions from the recently acquired Melio

** This software company acquired the small business bill payment platform Melio in 2025 for up to $3 billion (link)

** FY2027 adjusted EBITDA is forecast to be near the upper end of Xero's guidance range (NZ$860 million to NZ$920 million)

** According to data compiled by London Stock Exchange Group (LSEG), out of 13 analysts, 11 have a "Buy" or higher rating on the stock and 2 rate it "Hold"; the median target price is A$118.5

** As of the previous trading day's close, the stock is down 50.8% year-to-date

(To facilitate non-English speakers, Reuters has automated the translation of its reports into several other languages. As automated translation may be inaccurate or fail to capture certain context, Reuters does not guarantee the accuracy of the automated translation text and provides it solely for the convenience of readers. Reuters accepts no responsibility for any damage or loss caused by the use of the automated translation tool.)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

BUZZ - Citi launches "positive catalyst watch" on Xero, expects upside potential for its fiscal year profit margin

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