The Xero Limited (ASX: XRO) share price has been having a very tough year.
Weakness in the tech sector has led to the cloud accounting platform provider's shares losing 30% of their value in 2022.
While this is disappointing, it could be a buying opportunity for investors according to analysts at Goldman Sachs.
This morning the broker spoke very positively about the company's future and noted that it sees a lot of value in the current Xero share price.
What did the broker say about the Xero share price?
According to the note, Goldman Sachs has retained its buy rating with a slightly trimmed price target of $133.00.
Based on the current Xero share price of $102.78, this implies potential upside of almost 30% for investors over the next 12 months.
Goldman commented: "Following the recent underperformance (absolute/relative), we see an attractive entry point into what is a compelling global growth story and our preferred large cap technology name in ANZ."
What else did the broker say?
Goldman has been speaking with accountants and it appears pleased with the feedback it was given.
The broker explained: "Our accountant channel checks provided positive feedback for Xero's offering in APAC/UK, with room for improvement in the US/RoW, noting the software enables operating efficiency, new customer wins, fee uplift and increases retention (outperforming customer churn). However, on app store fees, accountant partners remain cautious that it may disrupt the open API ecosystem."
In addition, its analysts highlight recent federal budget tailwinds (cloud accounting expensing) and high frequency data points.
In respect to the latter, Goldman said: "High frequency data points highlight (1) Xero has had positive app download momentum in USA/RoW during 2H22; (2) Xero vacancies have normalised into 2H22 post flagged investment at the FY21 result; (3) app integrations have slowed marginally since introducing fees in Aug-21; while (4) PH/HK/ZA have accelerated growth in accountant partners (UK/Aus remain the largest channels)."
All in all, the broker has seen nothing to dampen its bullish view on the Xero share price.
