The Xero Limited (ASX: XRO) share price has been on a tear this year.
Since the start of the year, the cloud accounting platform provider's shares have risen an impressive 47%.
This compares favourably a 3.5% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.
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Can the Xero share price keep rising?
The good news for investors is that the team at Citi doesn't believe it is too late to get in on the action.
According to a note from last week, the broker has retained its buy rating and $141.90 price target on the company's shares.
Based on the current Xero share price of $124.15, this implies a potential upside of 14.3% for investors over the next 12 months.
What is the broker saying?
Citi came away from XeroCon feeling very positive on the company's outlook. In fact, the broker feels that Xero's subscriber growth could be better than expected in the ANZ region during the first half of FY 2024.
In addition, its analysts highlight recent actions that they believe could boost Xero's average revenue per user (ARPU) metric and the stickiness of its product. The broker explains:
We see potential for ANZ subs growth to surprise on the upside in the 1H result, with Xero noting that SMBs have been resilient and Xero pointing to further growth opportunities in both markets. While early in the monetisation journey, there seems to be an increased focus on increasing the attach rate of payments which we see as positive for ARPU (and stickiness) over the longer-term.
All in all, this could potentially make Xero a top option for growth investors who are looking for long-term investment opportunities in the tech sector this month.
