2248 GMT - Xero's first-half result is seen by Macquarie analysts as evidence that the cloud-accounting software provider is making good capital-allocation decisions. They tell clients in a note that management is making data-driven decisions on capital, with benefits from new products still to come. They point out that the company's reiterated guidance for a full-year operating-expense ratio of 73% assumes further growth reinvestment. Xero's discipline and rule-of-40 performance gives the Macquarie analysts that Xero will hit its expense targets. Macquarie lifts it target price 1.8% to A$191.90 and keeps an 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 17:48 ET (22:48 GMT)
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