The Xero Limited (ASX: XRO) share price continued its ascent on Tuesday.
At one stage, the cloud accounting platform provider's shares hit a new 52-week high of $125.48 before giving back its gains.
When the Xero share price hit that level, it meant it was up over 42% since this time last year.
In light of this strong form, investors may be wondering if the company's shares are close to peaking.
So, let's take a look and see how its share price compares to what brokers believe it should be trading at right now.
Can the Xero share price keep rising?
One broker that still sees potential for the Xero share price to rise a touch further is Goldman Sachs.
It currently has a buy rating and a $130 price target on its shares. This suggests that they could rise approximately 5% from current levels.
But whether that is a sufficient risk/reward, is something investors would have to consider. It arguably could be better to keep your powder dry and wait for a pullback in the tech sector.
Elsewhere, Citi currently has a buy rating on Xero's shares. However, its $120 price target has now been surpassed by the Xero share price, so once again, it could be argued that holding tight might be best for investors.
It's a similar story over at Morgan Stanley, where its analysts have an overweight rating and a $125 price target. This is largely in line with where its shares trade today.
Finally, one broker that isn't overly positive is Morgans. It recently downgraded Xero's shares to a hold rating with a $101.00 price target. This suggests that its shares could fall over 18% from current levels.
What's next?
Earlier this week Xero revealed that it will be holding its annual general meeting on 17 August.
The company is likely to release a trading update at the event, which could lead to brokers reassessing their recommendations and valuations. So, stay tuned for that next month.
