UPDATE: Stifel Initiates Coverage On Xoom On Positive Outlook

In a report published Tuesday, Stifel analyst Christopher Brendler initiated coverage on Xoom Corp (NASDAQ: XOOM) with a Buy rating and $25.00 price target.

In the report, Stifel noted, “In our view, Xoom is a fast growing, tech-enabled disruptor trading at a discount to internet peers with similar growth profiles. Although the sharp 3Q14 slowdown and sudden CFO departure raise serious questions, the current valuation largely reflects these risks (trading below IPO price), and we believe encouraging 4Q14/1H15 results will alleviate fears and help the stock recover. Accordingly, we rate the shares Buy and set a $25 target price based on 19x our 2017 adjusted EBITDA estimate.”

Xoom closed on Monday at $16.89.