14 Oct 2014

Analyst doubts US success for Xero

7:38 am on 14 October 2014

Accountancy software company Xero is not likely to succeed in the United States, and many predict slower growth there than previously forecast, an analyst says.

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Photo: RNZ

That follows Xero's sales report last week which showed customer numbers in the US rose just 4000 in the six months ended September to 22,000.

Woodward Partners co-founder Nick Lewis said Intuit was a large competitor with deep pockets, and Xero is a minnow by comparison.

Mr Lewis said it would take something incredibly disruptive to beat Intuit at its own game.

Xero was disruptive three or four years ago but everybody else had caught up, he said.

Harbour Asset Management managing director Andrew Bascand said his company did not own any Xero shares but had spent considerable time researching the stock.

Mr Bascand said Xero has a good product so it was a question of price.

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