Xero Ltd (ASX: XRO) shares have plummeted nearly 60% from an all-time high in June last year.
While the shares have climbed 13.54% since hitting a three-year low in mid-February, they are still down 27.31% year-to-date and are trading lower again (2.56% lower) on Wednesday morning.
The company announced a lower-than-expected FY25 result in May last year, followed by news of its US$2.5 billion acquisition of US-based Melio in July, which spooked investors.
Its FY26 interim results in November saw a net operating result a little behind expectations, but its EBITDA was ahead, and investors reacted cautiously.
The cloud-based accounting software company was caught up in the sector-wide tech sell-off and AI-related nervousness late last year (and into early 2026). This, combined with investor worry about the company's Melio acquisition, and potentially overvalued share price, saw many sell up.
Going forward, analysts are incredibly bullish on the outlook for Xero shares, with some tipping the tech stock to double, or more, over the next 12 months.
While it looks like that sort of share price growth is doable, thanks to the company's 'sticky' subscriber base and global expansion plans, there is a very long way for Xero to go before it returns to mid-2025 levels.
Here's another ASX tech stock that I think has fantastic prospects for strong growth this year. And analysts are tipping upsides as strong as those for Xero.
Image source: Getty Images
I'd buy SiteMinder shares instead
SiteMinder Ltd (ASX: SDR) provides an e-commerce platform for hotels and other accommodation businesses. The company touts its product as helping hotels to sell, market, manage, and grow their businesses from one platform. It offers integrations with hotel property management systems and third parties such as online travel agencies, tour operators, and global travel distributors.
The company posted strong half-year FY26 growth last month, including a 25.5% revenue increase, and its EBITDA doubled. SiteMinder said that it is targeting continued strong growth in annual recurring revenue through the second half of FY26, underpinned by further Smart Platform adoption. Management expects ongoing improvements in its financials across the board. In the medium term, SiteMinder is aiming for a rapid 30% revenue growth.
At a current share price of $3.37, at the time of writing, it looks like a rare buying opportunity for a stock well-positioned for great growth this year. Surprisingly, the Siteminder share price has declined by more than 52% over the past six months. But structural tailwinds could easily cause a sharp turnaround.
What do analysts think of SiteMinder shares?
Analysts are very bullish about the outlook for SiteMinder shares. TradingView data shows that 14 out of 16 analysts have a buy or strong buy rating on the ASX tech stock.
The maximum target price is $8.30. That implies that the share price could rocket 148.5% higher over the next 12 months. That's more than double the value!
