Just got this in an email ...Mon, 4 Mar at 9:28 amXRO - XERO...

Just got this in an email ...Mon, 4 Mar at 9:28 am

XRO - XERO LIMITED

Macquarie rates XRO as Upgrade to Outperform from Underperform (1) - Macquarie increases its target for Xero to $152.60 from $87 and upgrades by two rating notches to Outperform from Underperform.

These changes reflect the broker's increased confidence in the company's strategy as expressed by new key management personnel. better product development and an improved customer value proposition is anticipated.

A demonstration of the generative AI assistant (Just Ask Xero) reflects an advanced data and AI strategy that will potentially improve efficency, in the analysts's view.

Management will continue to focus on the US opportunity in the direct channel, notes Macquarie.

Target price is $152.60 Current Price is $134.93 Difference: $17.67 If XRO meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges). Current consensus price target is $121.55, suggesting downside of -9.9%(ex-dividends)The company's fiscal year ends in March.

Forecast for FY24:

Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 86.59 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 155.82. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 61.9, implying annual growth of N/A. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 218.0.

Forecast for FY25:

Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 152.05 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 88.74. How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 100.6, implying annual growth of 62.5%. Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A. Current consensus EPS estimate suggests the PER is 134.1.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.Market Sentiment: 0.5All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources