Citi Research downgrades Xero's earnings growth forecast, remains bullish

Xero CEO Steve Vamos. (Image: Supplied)

Thu, 05 Jan 2023

Citi Research has downgraded its earnings forecasts for Xero, blaming further delays to the UK’s Making Tax Digital (MTD) process.However, the analysts expected Xero to deliver strong earnings growth, with a compound annual growth rate in earnings before income tax, depreciation and amortisation (Ebitda) of 30% over the next three years.It revised Xero’s projected March 2023 Ebitda by 1% from $290 million to $288m. The analysts dropped Xero’s March 2024 Ebitda forecast from $399m to $397m, with the 2025 forecast dropping from...

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