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Updated thoughts on Xero (XRO) please

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Updated thoughts on Xero (XRO) please

Hi Team Thanks as always for your outstanding newsletters and Q&A. Just wondering whether you could give us your latest thoughts on whether this strong up movement in Xero can continue or should one be looking at taking some off the table at these elevated prices (currently $133 today -Friday) Also whether you could update your thoughts on the relative attractiveness of holding hybrids with the probability of recession appearing to be dropping? Many thanks


Hi Don,

  • We may consider trimming our XRO position into strength but it’s likely to be part of a switch as we aren’t keen to reduce overall market exposure as the ASX200 pushes through 7700. Their strategy day on Thursday was very good, we liked what we heard and we’re clearly not alone, we’ll cover that in more depth next week.
  • We still like Hybrids here as part of a portfolio. If the economy is better than feared, there will be fewer rate cuts than expected/priced, and given hybrids are floating rate notes, that means their income will stay higher for longer.
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Xero Ltd (XRO)
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