2356 GMT - Xero's lower-than-expected cost-to-revenue ratio makes the cloud-accounting software provider's full-year guidance look conservative, Jefferies analyst Roger Samuel says. Xero is still forecasting a 73% full-year cost ratio despite a fiscal first-half cost ratio of 71% and lower product design and development costs. Samuel suggests that the discrepancy could imply higher earnings expectations across fiscal 2025. Overall, he tells clients in a note that Xero's latest result looks strong. Jefferies has a buy rating and A$175.40 target price on the stock, which is up 6.1% at A$171.42. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 13, 2024 18:56 ET (23:56 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.