Jefferies raises PT for Australia's Xero, maintains 'hold'

** Jefferies raises price target of Australia's Xero XRO.AX to A$76.80 from A$67

** Brokerage says company's modest upgrade to FY27 forecast and stronger FY28 outlook is "very encouraging"

** Cloud accounting software provider on Thursday forecast FY27 adjusted EBITDA of NZ$880 million - NZ$920 million ($487.96 mln-$510.14mln), up from previous outlook of NZ$860 million - NZ$920 million, and FY28 revenue opportunity of more than NZ$4.6 billion

** Jefferies says 1H27 result was mixed, with revenue in line with consensus and adjusted EBITDA 2% below estimates

** Broker adds A$1.2 billion buyback is larger than expected, with forecast free cash flow of NZ$750 million - NZ$850 million over FY27-28 falling short of funding the programme

** Jefferies upgrades FY28E NPATA estimate for co by 17% but remains cautious on valuation

** Twelve of 13 analysts rate the stock "buy" or higher, while one rates it "hold"; median price target is A$110, according to LSEG data

** Stock down 37.9% YTD, as of last close

($1 = 1.8034 New Zealand dollars)