2349 GMT - Xero's quality and growth prospects keep Jarden analysts Tom Beadle and Liam Robertson bullish on the stock though its valuation is starting to look stretched. The pair tell clients in a note that the cloud-accounting software provider's strong 1H cost performance and revenue momentum prompt them to raise their FY 2025 underlying EPS forecast by 3%. The company's full-year cost outlook is seen as conservative given its lower-than-expected 1H expense ratio. The pair forecast a full-year ratio of 72.1%, up from 71.2% in 1H but below Xero's 73% guidance. Jarden raises its target price 17% to A$177.00 and keeps an overweight rating on the stock. Shares are down 0.5% at A$170.21. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 14, 2024 18:49 ET (23:49 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.