- Believing shares will benefit from "the continued secular shift towards mobile payments," Macquarie has launched coverage on Xoom (XOOM +1.7%) with an Outperform rating and $20 target.
- The firm observes Xoom has underperformed (slower-growing) money transfer peers Western Union and Moneygram in 2015 thanks to soft guidance and a fraud disclosure. It adds Xoom has averaged a 21% gain in June over the last two years, something Macquarie believes was aided by strong Mother's Day remittances.
- Q1 results arrive on April 28. 4.8M shares (nearly 20% of the float) were shorted as of March 31.