Xero Limited downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Xero Limited (XROLF) to Sector Perform from Outperform with a price target of A$187, down from A$230. JPMorgan (JPM), according to media reports, is planning to impose fees on fintech and payments players seeking access to the bank’s infrastructure and customer data ecosystem in the U.S., which appears negative for Xero and Melio, the analyst tells investors. Citing increased business and forecasting complexity as well as uncertainty on U.S. bank fees, the firm is applying a lower multiple to its estimates for Xero.