0155 GMT - Xero's recent share-price weakness is seen at UBS as evidence that strong AI-driven disruption is still being priced in. Analysts Lucy Huang and Ailsa Lei tell clients in a note that their recent channel checks have given them comfort on Xero's defensive qualities and its competitive position among accounting-software providers. With an unchanged buy rating on the Australia-listed stock, they think current valuation factors in average annual revenue growth of 7% over the next four years and implies average revenue per user will stop growing from fiscal 2027. This is harsh, they say. UBS cuts its target price 12% to 106.00 Australian dollars. Shares are down 1.1% at A$63.73.
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