XRO – Credit Suisse rates the stock as Upgrade to Outperform

Credit Suisse welcomes the recent Planday acquisition, believing the segment has attractive metrics which complement the existing business. Following the share price rally late in 2020, the broker believes the stock has now disconnected from fundamentals.

While the share price is slightly below where it was mid November, over time it makes an attractive acquisition and, amid further positive data points, the broker suggests there is another four months of more than 20% revenue growth.

Rating is upgraded to Outperform from Neutral and the target is raised to $136 from $119.

Sector: Software & Services.

 

Target price is $136.00.Current Price is $119.64. Difference: $16.36 – (brackets indicate current price is over target). If XRO meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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