Xero Bull Reckons Stock Is Fundamentally Mispriced -- Market Talk
Dow Jones
Feb 04
2333 GMT - Xero's bull at Macquarie thinks the stock is fundamentally mispriced given factors that include the increasing monetization of its AI capabilities. A note from one of the investment bank's analysts highlights the productivity benefits that the accounting software provider's customers are already enjoying, and flags Xero's ability to charge for AI services as a key catalyst for a rerate in the next 12 months. Maintaining an outperform rating on the software-accounting provider, the analyst raises EPS forecasts on increased confidence in Xero's Melio payments unit. Macquarie lifts its target price 1.5% to A$233.80. Shares are down 13% at A$83.88. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
February 03, 2026 18:33 ET (23:33 GMT)
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