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Xero (XRO), would you buy now if you didn’t hold?

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked 17/05/2025

Xero (XRO), would you buy now if you didn’t hold?

Thanks MM for your regular updates and insightful commentary. I bought Xero sometime ago on a MM recommendation but sold last year after a reasonable increase. My logic at the time was that I thought the price may plateau or drop but the opposite has happened with very strong results lately. If you weren't holding now would XRO be a buy? Regards Peter

Answer

Hi Peter,

An interesting question because the answer comes with a couple of caveats:

We believe XRO is a world class company but after its 36% bounce from its April low its definitely not in bargain territory, especially for a stock that does often retrace ~20%.

Our answer all comes down to timeframes, although we are fans of XRO believing it to be a quality stock as its recent result showed:

We are bullish XRO through 2025 looking for a test of $200 – about 10% higher.
However we would not be surprised if investors got another opportunity to buy XRO around $150 in the next 1-2 years.

Hence our answer is a convoluted yes as a short term play but its not a great levels to “Buy & Hold”.

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Xero Ltd (XRO)

LAST UPDATED 16/05/2025 14:37

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