2259 GMT - Xero's growth investment is unlikely to increase to lift operating expenses to the level suggested by the cloud-accounting software provider's guidance, Goldman Sachs analysts say in a note. They think that the Australia-listed company's increased focus on the U.S. market will lead to higher investment over its fiscal second half, they don't see it reaching the level necessary for operating expenses to account for 73% of revenue. This would require what they call a material acceleration in expenses. They forecast a 72.4% ratio over the whole of fiscal 2025. Goldman Sachs keeps a buy rating and outperform rating on the stock, which is at A$171.00 ahead of the open. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 14, 2024 17:59 ET (22:59 GMT)
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