BUZZ - Citi launches a positive catalyst watch on Xero, optimistic about its first-half performance; stock price rises

November 4 - ** Citi analysts maintain a "Buy" rating on Wellington-based Xero (XRO.AX), with a target price of AUD 91.55

** The broker has initiated a positive catalyst watch ahead of the first half financial results, expecting strong revenue growth

** Notes that adoption of Cashflow Central remains slow, but has begun to accelerate

** Expects that the accelerated rollout of "Cashflow Central" will support joint payments revenue growth in the second half of 2027, projecting a year-on-year increase of 48%

** The broker forecasts Melio to achieve year-on-year growth of 38% in fiscal year 2027, with a revenue compound annual growth rate (CAGR) of 35% through to fiscal year 2029

** Adds that growth in the joint payments business should also help improve gross margin

** XRO shares rose as much as 1.8% to AUD 64.170

** Year to date, the stock has fallen by 45.5%, including the latest daily movements

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