Wednesday , June 23 2021

Is the price of Xero Limited (ASX: XRO) shares in the purchase zone?

The Xero Limited (ASX: XRO) the stock price had a positive end to the week until Friday.

Shares of the company from the accounting software industry ended the day by over 3% higher and amounted to 41.98 USD, which means that they ended an unstable week, mostly unchanged.

Today's profits are particularly impressive because bears are recording a broker from Credit Suisse hitting wires this morning, announcing Xero as a sale.

Why does the broker have a downward trend on Xero?

According to the Credit Suisse note, it has a low rating and a target price of USD 35.00 on Xero shares.

The broker maintained strong performance due to the low rating after Xero increased its price from the $ 300 million replacement banknote offer to work this week.

Although the broker perceives the acquisition of Instafile as positive and believes that the new opportunities that this company provides and the acquisition of Hubdoc are helpful, at this stage it seems that the increase in the number of subscribers is crucial.

Unfortunately, the broker suspects that its growth in the ANZ subscription will most likely decrease in the near future.

But not all brokers are a bear on Xero. It got more positive Morgan Stanley this week.

This note gave the company shares of overweight and USD 50.00. This target price level means a potential increase of over 19% for Xero shares over the next 12 months.

According to the note, the broker became acquainted with the company's prospects in the USA and does not believe that it will be a significant winner on the market.

However, it does not appear that it must justify the price of the shares. Morgan Stanley believes that success in other international markets and the ANZ market is enough to raise its share price in the medium term.

Is it worth investing?

I agree with the view of Morgan Stanley and I believe that Xero would be a great option to buy and have, together with other stars, techniques Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

If you like Xero, I'd recommend checking these and upcoming technology actions that were rated as bought.

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Originator Motley Fool James Mickleboro has no position in any of the listed resources. Motley Fool Australia owns the shares of Altium, Appen Ltd and Xero. We, Fools, may not all have the same opinions, but we all think that, given the diverse insights, we are better investors. The Motley Fool has a disclosure policy. This article contains general investment advice (under AFSL 400691). Authorized by Scott Phillips.

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