Xero Ltd (ASX: XRO) shares have been on fire over the past month.

During this time, the cloud accounting platform provider's shares have rallied almost 19% higher to $181.47.

Can they keep climbing from here? Let's see what analysts at Macquarie Group Ltd (ASX: MQG) are saying about the high-flying stock.

What is being said about Xero?

Macquarie was pleased with the company's strong performance during FY 2025 and sees no reason why it can't continue for the foreseeable future. Particularly given its abundant organic growth opportunities and significant total addressable market (TAM) in payments. The broker said:

Product velocity supporting growth. Product development and partnerships over the last 12 months have significantly enhanced XRO's product and competitive position vs global peers. Many of these are yet to fully launch, with many partnerships still in the process of being embedded/rolled out. Notable developments in FY25 include full release of US BILL integration and Xero Simple for Making Tax Digital Phase III in the UK, further roll-out of JAX beta, and Syft launched for early access in the US.

In respect to payments, Macquarie feels that this could be its new growth engine. It adds:

Payments is XRO's largest TAM at ~NZ $59b, mostly in the US. Growth was driven both by TPV (+38% YoY) and take-rate (+27 YoY). With Trump's digitisation of payments, accounts receivable partnership, positive commentary on UK payments and high EBIT margins (we estimate ~90%) on Stripe partnership, there is early evidence of new growth engine.

In light of the above, the broker is forecasting annual EBITDA growth in the region of 26% to 29% each year through to FY 2028.

What are Xero shares worth?

The team at Macquarie believes that Xero's shares could reset records over the next 12 months and hit new all-time highs.

According to the note, its analysts have put an outperform rating and $204.00 price target on its shares. Based on its current share price of $181.47, this implies potential upside of 12.5% for investors.

Clearly, the broker doesn't believe it is too late for investors to get on board with this one. It then concludes:

Mgmt is walking the walk, making data-driven decisions that invariably lead to better capital allocation outcomes. We have high conviction in >12- month story. However, with upcoming brand reinvestment, any downside from cost growth presents buying opp. Reiterate Outperform.