Xero (XRO) and CSL Ltd (CSL) etc

Morning All,

We’ve combined a few subscribers’ questions here as they have the common thread of Xero Ltd (XRO) which we actually touched on in Thursday mornings report – Here. Xero has corrected ~24% from its June high but we should remember they also executed a $1.98bn capital raise at $176 to fund its acquisition of Melio, and support its strategic growth, effectively making up over 40% of the recent decline. Our current stance can be summarised as follows:

• We are looking to increase risk across the MM portfolios into the current market pullback with tech one specific area of interest.
• We like XRO’s recent US Melio acquisition believing it improves the company’s growth path in the years ahead.
• We are looking to specifically increase our Xero (XRO) holding in the active growth portfolio ~$140 (hopefully!).

Xero will release its FY26 Half‑Year Results in mid-November and we anticipate another solid update from the cloud-based accounting software business. It’s likely to be too early for any meaningful feedback on the Melio acquisition.

Moving on to the other additional parts in the above 3 questions:

• We are not as keen to average our CSL position, although value would start to look interesting below $200.
• In terms of gold stocks our preference hasn’t changed BUT we are closer to being sellers as opposed to buyers.

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Xero Ltd (XRO)

LAST UPDATED 04/09/2025 10:20

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Xero Ltd (XRO)

LAST UPDATED 04/09/2025 10:20