Needham & Company Starts Xoom Corporation (XOOM) at Buy - InvestingChannel

Needham & Company Starts Xoom Corporation (XOOM) at Buy

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Rating Summary:

3 Buy, 1 Hold, 0 Sell

Rating Trend: Up

Today’s Overall Ratings:

Needham & Company initiates coverage on recent IPO Xoom Corporation (NASDAQ: XOOM) with a Buy rating and $27 price target.

The analyst comments, “Xoom is disrupting the legacy cash-to-cash global money transfer market, growing substantially faster than the traditional offline players. We believe Xoom offers consumers a compelling value proposition with a convenient, fast, and cost effective way to send money to 30 countries. We see Xoom as a multi-year 25-30% revenue growth and margin expansion story that has the potential to deliver sustained upside surprises as it captures share from the legacy players. Despite the almost 50% jump in the stock from the IPO price, we recommend investors BUY the stock, although we note we would be more aggressive on pullbacks. We believe Xoom is a good fit for small-cap aggressive growth portfolios.”

For an analyst ratings summary and ratings history on Xoom Corporation click here. For more ratings news on Xoom Corporation click here.

Shares of Xoom Corporation closed at $23.85 yesterday, with a 52 week range of $20.00-$26.00.

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