Xero (XRO) leads growth names higher, is the worm turning?
The ASX200 is down ~0.6% on further Trump-Greenland jitters but some of the growth names have bucked the trend led by Xero (XRO) which is up over +3% and supported by the likes of Megaport (MP1), Technology One (TN1), and Seek (SEK).
The last 12-months has seen extremely polarised performance across the ASX with the Materials sector rallying +35% while Tech has fallen 24%. At some stage this huge performance differential will revert to at least some degree, and we believe the time is close at hand.
With the stock trading on 80x its not cheap BUT it’s a lot cheaper than it was, especially with revenue forecast to grow by over 60% from FY25 to $NZD3.5bn in FY27.
- We feel the stock is at least looking for a low if indeed it hasn’t already found one.
MM is bullish Xero Ltd (XRO) around $104
Add To Hit List
