Following Xero’s 1H results, valuation remains Macquarie’s key concern. The broker sees A&NZ reaching maturity and slower than forecast overseas growth weighing upon revenue.
International subscriber growth was -3% below the analyst’s expectation. In the US market, the analyst sees difficulty in competing with the size of QuickBooks. The $130 target price and Underperform rating are maintained.
Sector: Software & Services.
Target price is $130.00.Current Price is $145.85. Difference: ($15.85) – (brackets indicate current price is over target). If XRO meets the Macquarie target it will return approximately -12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
