0551 GMT - Xero's bull at Citi expects the cloud-accounting software provider to get close to fulfilling the so-called rule-of-40 when it reports first-half results this week. Analyst Siraj Ahmed reiterates his buy call ahead of the Australia-listed company's announcement, tipping its free cash flow margin and revenue growth to total 39 on the rule-of-40 scale. He reckons that operating costs will account for 73% of operating income, which is in line with Xero's full-year guidance. Ahmed still thinks Xero could get this down to 72% over the full fiscal year despite an increase in hiring activity. Citi raises its target price 17% to A$185.00. Shares closed 0.95% higher at A$161.14. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 12, 2024 00:51 ET (05:51 GMT)
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