It’s hard to talk growth stocks without mentioning online accounting provider Xero (XRO) and after ‘another’ 30% correction – who says markets don’t repeat – we remain bullish.
The investment case here is simple. In MM’s view, there will be a 2-3 major players globally in the provision of online accounting software and XRO is likely to be one of them. The adoption of cloud based solutions in Australia and the UK has been very high, however in the major developed market of the US it’s very low. This is where XRO will get it’s next leg of growth, and in MM’s view, will instil itself as a major global player.
While MM is an active investor, there are some companies that we need to back for the longer term, and we believe XRO is one of them.
MM remains bullish & long XRO
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