Analyst Says 'Use Xoom As Way To Play Mother's Day'
In a report published Thursday, Macquarie analysts initiated coverage of Xoom Corp (NASDAQ: XOOM) with an Outperform rating and a price target of $20.
Xoom's share price surged 10 percent last week, versus a 0.9 percent rise in S&P500. The analysts recommend "tactically scaling positions on any pullback," citing the many near-term catalysts. The company's share price should rally as "investors benefit from the continued secular shift towards mobile payments."
In the report Macquarie noted, "Based on the IPO price, Xoom has outperform MGI, but has underperformed relative to WU and the broader market. In 2015, after a weak 3Q15, Jan-15 fraud announcement, and a lackluster 2015 guide, Xoom has underperformed its peers + the broader market despite strong Q4 results."
While saying that the recent missteps were behind the company now, the analysts commented that market share gains offer Xoom growth opportunities in the near term. "We also note that the stock has returned 21% on average in the month of June since its IPO in 2013 helped by Mother's Day remittances," the report added.
Latest Ratings for XOOM
|Jul 2015||Stifel Nicolaus||Maintains||Buy|
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