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XRO - Xero News Story

A$138.9 2.1  1.5%

Last Trade - 09/04/21

Sector
Technology
Size
Large Cap
Market Cap £10.95bn
Enterprise Value £10.91bn
Revenue £405.4m
Position in Universe 27th / 1893

BUZZ-Australia's Xero: Jefferies says Planday acquisition could pave way to enter Europe

Thu 4th March, 2021 7:18pm
** Brokerage Jefferies maintains 'hold' rating and PT of
A$118.03 on Xero Ltd  XRO.AX  after the accounting software
maker announced the acquisition of Denmark-based workforce
management platform Planday for EUR183.5 mln ($219.7 mln) 
    ** Co added that while the integration and operating costs
of the deal are expected to have modest negative impact on co's
FY22 EBITDA, it is expected to contribute about 3ppts of
additional operating revenue for FY22  urn:newsml:reuters.com:*:nASX6hfZLx
    ** Jefferies says that XRO's acquisition of Planday could
pave its way to enter the European market and adds that
Planday's business can be complementary to co's payroll model 
    ** "We therefore see some synergies from the acquisition,
although it would be moderately EBITDA dilutive at first in
FY22." - Jefferies
    ** Four of 14 analysts rate the stock "buy" or higher, five
"hold" and four "sell" or lower; their median PT is A$118.12 –
Refinitiv data
    ** Stock down 21.1% this year, as of last close

($1 = 0.8351 euros)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))
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