The Xero Ltd (ASX: XRO) share price is tracking south today, now trading 1.46% lower at $100.03.
Aside from a momentary gain over the past month, Xero shares are deep in the red and have a way to go before hitting their previous highs.
But what are experts saying about the accounting software provider's prospects? Let's see.
Analysts say buy Xero
Jefferies is bullish on the stock and reckons it is heavily undervalued at current prices. In a recent note, the investment bank cited market research it had conducted to gauge Xero's user sentiment.
Its findings noted that many small to medium-sized enterprises (SMEs) are users of Xero's product and are satisfied with what's on offer.
The broker also likes Xero's growth strategy, noting it could give the business access to a market of 33 million SMEs in North America.
Meanwhile, analysts at Citi reckon the recent federal budget will be a net positive for the company. The broker seems to think because some SMEs can deduct a further 20% of digital costs until June 30, this could boost subscriber inflows to Xero.
Bloomberg Intelligence analyst Matt Ingram is also constructive on the federal budget's effect on Xero.
Xero's Australian sales growth might beat consensus' 15% next year thanks to the government's A$1 billion small business support to go digital.
Called the 'Introducing the Technology Investment Boost', about 3.6 million businesses will be eligible vs. Xero's current 1.2 million subscribers.
Other analysts are constructive on the company as well, valuing Xero at $128.15 per share on average, according to Bloomberg consensus data. More than 56% say buy while another 25% say Xero is a hold. Three analysts urge clients to sell.
Evans and Partners reckons Xero is worth $203 per share, whilst Jarden says the share price is around $150 a pop based on its calculations.
The Xero share price has fallen more than 29% into the red over the past 12 months, also falling 29% this year to date.
