2024-02-18 10:38:18 ET
Summary
- Xero Limited's revenue growth is likely to decelerate in the near term, taking into account the weak macroeconomic outlook for its key markets.
- The accounting cloud penetration rates in New Zealand and Australia are already pretty high, which will put a cap on XROLF's growth potential for the long run.
- Xero Limited's current valuations are still very rich, which isn't warranted considering its short-term and long-term growth prospects.
Elevator Pitch
Xero Limited ( XROLF ) [XRO:AU] is assigned a Sell investment rating. Earlier, I wrote about XROLF's competitive pressures and its new convertible notes issuance in my initiation article published on January 7, 2021....
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Xero Limited: Valuation Premium Isn't Justified