Citi opens positive catalyst watch on Xero, sees upside to HY results; shares rise

Citigroup

04/11/2026 04:48

**  Analysts at Citi retain a "buy" rating on Wellington-headquartered Xero XRO.AX with A$91.55 target price 
** Brokerage opens positive catalyst watch ahead of H1 results, expecting strong top-line growth
** Says adoption of Cashflow Central remains slow but is starting to ramp
** Expects the ramp-up in Cashflow Central to support syndicated payments revenue growth in 2H27, forecasting 48% y/y growth
** Brokerage forecasts growth in Melio of 38% y/y in FY27 and a 35% revenue CAGR through FY29
** Adds, growth in syndicated payments should also be gross-margin accretive
** Shares of XRO rise as much as 1.8% to A$64.170
** YTD, stock down 45.5%, including the session's moves 


 (Reporting by Paridhi Minda in Bengaluru)
 ((Paridhi.minda@thomsonreuters.com;))