2330 GMT [Dow Jones]--Cloud-accounting software provider Xero still needs to invest heavily in its U.S. marketing efforts, according to Jefferies analyst Roger Samuel. He tells clients in a note that the acquisition of bill-pay provider Melio increases the Australia-listed company's scalability in the U.S., but that continued investment is required to deliver on the opportunity there. Samuel doesn't see Melio breaking even until the second half of fiscal 2030 and lowers his Ebitda forecasts for Xero for both the current and next fiscal years. More positively, he thinks Xero is likely to beat its expense-ratio guidance for the current year. Jefferies trims its target price 5.3% to A$167.60 and keeps a hold rating on the stock. Shares are down 1.6% at A$151.93. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

October 22, 2025 19:34 ET (23:34 GMT)

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