0341 GMT - Xero's management is doing what it can while waiting for investors to become more positive on software stocks, Morgan Stanley analysts say. The MS analysts reckon that all software providers can do right now is grow their business, deliver positive earnings surprises, and accelerate artificial-intelligence products to generate new revenue. They tell clients in a note that Xero's annual result shows the accounting-software provider delivering on the first two points. There is work to do on the third point, they add. They remain overweight on the stock, arguing that its recent derating was too severe. MS has a A$130.00 target price on the stock, which is down 1.9% at A$78.18. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

May 17, 2026 23:41 ET (03:41 GMT)

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