Xero shares lift as Wilsons Advisory backs growth guidance
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The news: Xero has seen its shares partially rebound as Wilsons Advisory analysts said the accounting software provider is well placed to meet guidance in the short and medium term.
The numbers: Shares in Xero had lifted 4.5% to $156.51 at 12:49pm AEST. Xero's share price closed 6.2% lower on Wednesday.
The context: Xero hosted its annual industry conference Xerocon on 3-4 September in Brisbane.
Wilsons Advisory analysts said the company “appears well placed to continue to meet its reiterated guidance for FY26 and its more recent medium-term guidance to ‘double revenue by FY28’”.
The analysts also noted that Xero does not expect ‘hockey-stick’ growth to get to its FY28 revenue guidance “suggesting perhaps a more ‘linear’ outcome than some had expected”.
Morningstar analysts, in a research note dated 3 September have improved their rating on the stock from one star to two stars as the share price moved through a ‘trigger level’, pushing the price to fair value ratio down.
The sources: Wilsons Advisory research, Morningstar research
