Xero shares have lost some ground today after a meteoric rise, closing down 8.8 per cent at $34.

The cloud-accounting company has lost a place on the NZX to third most valuable, behind Auckland International Airport ($4.7 billion) and Fletcher Building ($6.5b).

Shares in Xero, with a market capitalisation of $4.3b, were trading at one point today at $41.50.

Investment bank Credit Suisse yesterday dubbed Xero the "Apple of accounting". It gave Xero shares an "outperform" rating, with a price target of $45.70, but noted that global risks were "extreme".

Xero offers a low-priced subscription accounting software which uses cloud computing to give a low-priced product. This has given it a head start over its large competitors globally, such as Intuit in the US, Sage in Britain and MYOB and Reckon in the Australasian markets.

The stellar rise of the Wellington accounting software firm has caught the attention of the Australian media, quick to point out that it has a dual listing on the ASX. Xero is also starting to register with big investment banks, with global investment bank Credit Suisse dubbing Xero the "Apple of accounting".

Credit Suisse said in a note for clients that this was just the start for the growth-oriented firm, and said Xero could grow to a $10b Nasdaq issue within five years.

Xero's shares have surged this year and especially over the last few weeks, after it completed a share placement at $18.15, which sparked a re-rating of its shares which have risen 486 per cent, or $28, in the last 12 months.

Credit Suisse noted "a proven record of execution, customer acquisition momentum over next 18 months, potential for sustained 70-100 per cent revenue growth and valuation upside in a success case".

"As with any tech company going global, risks are extreme. Xero faces able competitors, especially Intuit.

"Risks include: execution, competitive response, key man, security, and high market beta," the investment bank said.

"We expect customer/revenue growth to continue to drive share performance, as those will evidence whether Xero is tracking for failure or success."