UPDATE: SunTrust Robinson Humphrey Initiates Coverage on Xoom Corporation with Buy Rating, $45 PT as Remittance Disruptor Should Drive Strong Share Gains, Revenue Growth, and Scale

In a report published Monday, SunTrust Robinson Humphrey analyst Andrew W. Jeffrey initiated coverage on

with a Buy rating and $45.00 price target. In the report, SunTrust Robinson Humphrey noted, “We are initiating coverage with a Buy and a Street-high $45 target. Strong customer growth, scalable infrastructure and impressive risk controls suggest that estimates are materially low. Our differentiated view highlights Xoom's strategy to capture outsized ‘disruptor share' in large targeted markets, rather than blanketing the world like the incumbents. We also quantify Xoom's compelling customer economics, which is a key component of our bullish thesis. The net of this view is that we believe Xoom can reach $650m-$700m in revenue, with a 35% EBITDA margin, in the next five-to-seven years.” Xoom Corporation closed on Friday at $33.54.