MM has written about XRO a few times of late which is no great surprise considering it’s a stock we hold and it’s been absolutely hammered over the last 6-months. We continue to believe that this quality online accounting business has been the victim of valuation contraction as opposed to anything more sinister. We were asked about the company’s medium / longer-term outlook in Saturday’s “Ask James” report but I thought today after tech stocks plunged in the US would be an ideal time to expand the answer with a short-term update, especially as we hold a 7% position in our Flagship Growth Portfolio.
- Over the coming month’s MM is looking for XRO to ride a tech bounce at least into the $110 area where we will consider trimming our position given our large weighting.
MM believes that XRO is poised for a +20% bounce on the upside
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