Xero's American dream could be a fantasy, according to one lonely market contrarian
The market can be a lonely place at times, especially for an analyst with a contrarian call on a stock that just keeps rising.
The market can be a lonely place at times, especially for the analyst going against the herd with a contrarian call on a stock that just keeps rising. Even getting a gutsy contrarian call right doesn't always work out the way it is supposed to.
As Capital Brief last week recounted, former UBS (and current Jarden) analyst Tom Beadle was for many years the lone voice expressing doubts about Afterpay's remarkable and at times inexplicable rise on ASX. Only now, years after the company was acquired by US payments giant Block, is he finally being vindicated.
This week, one analyst in the market was brave enough to stick his neck out on one of the ASX's current tech darlings (and one of only two members of the WAAX grouping still fully standing).
Kiwi accounting software giant Xero has not quite experienced a rise on the level of Afterpay, but the stock is up 20% already this year against a 1.4% rise for the broader market, 73% over the past year, against a 5.6% gain for ASX200.
