‘Opportunistic’: Xero boss says time right for $1b share buyback

Detailed summary

The accounting software firm’s shares rose sharply on Thursday after it announced the plan and upgraded earnings forecasts.

Xero chief executive Sukhinder Singh Cassidy says a $1 billion buyback scheme is opportunistic because the stock is undervalued, dismissing suggestions the software giant has no better way to spend the money.

The company’s shares climbed around 7 per cent to $75.81 on Thursday after it announced a buyback program and upgraded earnings forecasts for the full financial year. Xero also announced chief financial officer Claire Bramley was leaving the business after less than two years.

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.