BUZZ - Citi launches a positive catalyst watch on Xero, expects fiscal-year margin improvement; stock price rises
路透社2026/10/07 23:51Latest Developments October 7 – Xero (XRO.AX), headquartered in Wellington, saw its share price rise by as much as 2.3% to AUD 57.38. Citi analysts maintained a “Buy” rating on the software company with a target price of AUD 91.55. The brokerage launched a positive catalyst watch ahead of the half-year earnings release, citing recent share price weakness. Strong revenue growth is expected for the first half, including contributions from the recent acquisition of Melio. Xero acquired Melio, a small business bill payment platform under (link), in 2025 for up to USD 3 billion. The company forecasts FY27 adjusted EBITDA to be close to the upper end of Xero’s guidance range, which is NZD 860 million to NZD 920 million (USD 481.51 million to USD 515.11 million). The share price is down 50.3% year to date, and this has been factored into today’s trading movements. (USD 1 = NZD 1.7860) (For the convenience of non-English speakers, Reuters provides this automated translation in several languages. Due to possible inaccuracies and lack of context in automated translations, Reuters does not guarantee the accuracy of automated translation texts and provides them only for reader convenience. Reuters assumes no liability for any damage or loss resulting from use of the automated translation feature.)
Latest Updates
October 7 - ** Wellington-based Xero (XRO.AX) shares rose as much as 2.3%, reaching AUD 57.38
** Citi analysts maintain a “Buy” rating on the software company, with a target price of AUD 91.55
** Given the recent share price weakness, the brokerage initiated a proactive catalyst watch ahead of the company’s first-half results release
** First-half revenue is expected to achieve strong growth, including contributions from the recently acquired Melio
** Xero acquired small business bill payment platform Melio in 2025 for up to USD 3 billion (link)
** Forecast FY2027 adjusted EBITDA will approach the upper end of Xero’s guidance range, at NZD 860 million to NZD 920 million (USD 481.51 million to 515.11 million)
** Year-to-date share price has fallen 50.3%, with today’s volatility already priced in
(1 USD = NZD 1.7860)
(To facilitate non-native English speakers, Reuters automatically translates its reports into several other languages. As automated translation may contain errors or miss necessary context, Reuters does not guarantee the accuracy of the automated translation. It is provided solely for readers' convenience. Reuters accepts no liability whatsoever for any damages or losses incurred due to the use of automated translation.)
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