The Xero Ltd (ASX: XRO) share price is leaping higher today and notching a new 52-week high.
Shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider closed yesterday trading for $118.62. At the time of writing, shares are changing hands for $122.11, up 2.9%.
With the tech share now trading at the highest levels since January 2022, what can ASX 200 investors expect next for the Xero share price?
What are the experts forecasting?
For some greater insight into that outlook, we defer to the analysts at Goldman Sachs and Citi.
Both brokers have a bullish outlook for the Xero share price.
While Xero has managed to grow its subscriber base to more than three million customers, Citi believes there’s more growth ahead.
Citi forecasts that the ASX 200 tech stock will “deliver 3-year EBITDA CAGR >35%”.
To put that in plain English, Citi expects a compound annual growth rate (CAGR) of at least 35% in Xero’s earnings before interest, taxes, depreciation and amortisation (EBITDA) over the next three years.
Citi’s analysts are positive about the company’s cost-cutting regime. And the broker forecasts revenue growth of approximately 19%.
Citi has a ‘buy’ rating with a $120 target for the Xero share price. You may have noticed that Xero shot past that target in today’s trading.
As for Goldman Sachs, its analysts believe Xero’s total addressable market could be 100 million subscribers. That’s a lot of growth potential over the coming decades.
Goldman Sachs also has a ‘buy’ rating on the tech stock with a $130 price target. That’s more than 6% above the current price.
Xero share price snapshot
The Xero share price has been a stellar performer in 2023, gaining 74% since the opening bell on 3 January. Shares are up 43% over the past full year.
