Broker Moves: Holding on to Xero until the end of the financial year?

Both Jefferies and Morningstar are flagging customer growth risks for Xero. The brokers says customer growth is being impacted by price hikes, and noted the difficulty to win new customers in a mature ANZ market. Jefferies has cut its price target to $135.50 per share, while retaining it's 'hold' rating.

However, Citi has retained its 'buy' on Xero, with potential US upsides following the Melio acquisition.

Meanwhile - Morningstar is forecasting subdued growth earnings for the major banks... in the low to mid-single-digits over the next few years.

The broker says this reflects a broader challenge of weak productivity growth in Australia. This could in turn constrain economic growth.

Morningstar has added that CBA is "just priced for too much" compared to peers.

Elsewhere - UBS, Macquarie and Bell Potter have all raised their target prices on Orica... attached with 'buy' and 'outperform' ratings.

Bell Potter expects multiple tailwinds, such as continued contract benefits, strong sodium cyanide demand, and expanding exploration activity. It has a 'buy' on the stock, with a $26 target price.