0225 GMT - Citi analyst Siraj Ahmed wonders whether Xero's cost-ratio guidance can be interpreted with a little flexibility. Xero still expects full-year operating expenses to account for around 73% of operating income, even after reporting a first-half cost ratio of just 71.2%. Ahmed points out that last year's guidance from the cloud-accounting software provider was for a full-year cost ratio of about 75%. Xero ultimately delivered 73%, he reminds clients in a note. He wonders whether this suggests Xero is actually aiming as low as 71%. Factors including Xero's acquisition of Syft complicate things, he admits. Citi has a buy rating and A$185.00 target price on the stock, which is up 6.4% at A$171.84. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 13, 2024 21:25 ET (02:25 GMT)
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