From FNArena (17/9/20) MacquarieratesXROasNeutral, Target $85 The company's presentations have reinforced the various options for long-term growth. Macquarie expects investment will mirror the revenue outlook.While the pandemic has had an impact on profitability in the small-medium enterprise sector the broker assesses Xero has managed this well. A top-quality product creates loyalty in the customer base and, in the broker's view, enables long-term investment in the platform.Cloud penetration remains well below 20% in most regions outside of Australasia and, hence, Macquarie foresees the company's presence in new markets will provide a long runway for growth. Neutral rating retained. Target rises to $85 from $75.
XRO Price at posting:
$92.65 Sentiment: Hold Disclosure: Held
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