12/04/2024 09:07

Xero Ltd (XRO) $121.80

MM remains a big fan of this online cloud-based accounting software company XRO, but after more than doubling from its 2022 low, we are closer to trimming than adding to our 5% position. However, this is a quality company, and we have no plans to sell into weakness; in line with our ”three steps forward, two back” outlook, we may trim into strength, but we are likely to be fussy.

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14/03/2024 08:47

Xero Ltd (XRO) $138.01

XRO rallied another +1.8% yesterday, posting fresh 2-year highs in the process and extending its 2024 advance to more than 20%. MM is a big fan of online cloud-based accounting software company XRO, as we’ve outlined through 2024, particularly after its recent strategy day. However, the stock has rallied over 40% from its late 2023 low, and we are contemplating trimming our 5% holding ahead of its May FY result.

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06/03/2024 09:14

Xero Ltd (XRO) $134.52

On their strategy day, XRO's primary message was that it aims to double revenue while still achieving the rule of 40. The company didn’t provide a timeframe for the revenue lift, but 3-4 years looks realistic. The market embraced the mantra that profitability would not come at the expense of the topline, with several major houses upgrading their already positive outlook for the stock. A strong, refreshed management team has enhanced our confidence that they can deliver on this ambitious target to double sales while continuing to grow.

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23/02/2024 09:43

Xero Ltd (XRO) $116.65

This online cloud-based accounting software is aimed at small and medium-sized businesses and they already have ~4 million subscribers globally, with AI offering the ability to help turn the dial on this number.

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16/02/2024 08:58

Xero Ltd (XRO) $118.02

Online accounting business XRO popped +5.8% on Thursday with 4-month highs only a few cents away – November’s disappointing result looks to have been forgotten as confidence returns to the local growth stocks. The ALU euphoria looks capable of taking XRO well into our $130-140 target area.

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19/01/2024 09:09

Xero Ltd (XRO) $109.47

XRO is in a different situation to ALU having disappointed the market in November when it last reported. Even if the local tech stocks keep pace with their US peers, we cannot see XRO punching above its 2023 high; hence, we are looking to sell our holding ideally into strength as the NASDAQ registers new all-time highs.

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22/12/2023 08:59

Xero Ltd (XRO) $109.95

Over recent months, we have made no secret of our plans to move from overweight to underweight tech, with XRO a prime candidate to be sold after its disappointing performance this FY.

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13/12/2023 09:21

First Up

When it comes to stocks, not all boats float as one, the Tech Sector is arguably the most stock-specific group when it comes to relative performance. Depending on how you play with the numbers, almost 60% of the US S&P500’s gain through 2023 has been generated by the “Magnificent Seven” – incredibly just seven stocks have largely carried 500.

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07/12/2023 09:07

Xero Ltd (XRO) $103.74

MM has made no secret that we are looking to reduce our tech exposure in the coming weeks/months; looking at XRO, we should have done it earlier! At this stage, XRO is our preferred funding vehicle for a defensive skew, although if Altium (ALU) breaks towards new highs of ~$50, it will enter the frame.

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30/11/2023 09:16

Xero Ltd (XRO) v Telstra Group Ltd (TLS)

XRO has enjoyed a solid 2023, advancing +45% year-to-date, but the last few months have proved disappointing as the stocks corrected 20% following a soft report recently. We like the online accounting business, but valuation is always a concern, especially if/when we enter a risk-off period for equities.

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