BUZZ - Citi expects Xero, listed on the Australian Securities Exchange, to achieve profit growth ahead of its H1 earnings report.

October 19 - ** Citi reiterated its focus on positive catalysts for Xero XRO.AX ahead of its first-half fiscal 2027 results, expecting the company to deliver strong revenue growth and, thanks to cost controls, an improved profit margin for fiscal 2027.

** Citi maintains a "Buy" rating on Xero, with a target price of AUD 91.55.

** The bank stated that market concerns about Xero's growth in the US have been overstated and will not impact its short-term growth momentum in the region.

** The broker forecasts first-half fiscal 2027 net profit after tax (NPAT) at AUD 60 million (approximately USD 41.86 million), about 7% above the market consensus after earnings expectations were revised down in recent months.

** According to data compiled by London Stock Exchange Group (LSEG), out of 13 analysts, 11 rate the stock as "Buy" or higher, 2 as "Hold," with a median target price of AUD 118.50.

** As of the previous trading day's close, the stock had fallen 47.1% year-to-date.

(1 US dollar = 1.4333 Australian dollars)

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