Western Union (WU) Gets a Hold Rating from Northland Securities


In a report released today, Michael Grondahl from Northland Securities reiterated a Hold rating on Western Union (WU), with a price target of $18.50. The company’s shares closed yesterday at $21.09, close to its 52-week high of $21.25.

Grondahl observed:

“We reiterate our Market Perform rating and $18.50 PT. Key Points WU has begun implementing their new Global Strategy designed to improve efficiency, profitability, and long-term revenue growth focusing on expanding cross-border money movement solutions. This seems like 4th or 5th attempt for WU. Initial implementation changes WU’s operating model designed to drive profitability and efficiency. Planned changes include reduction of ~10% net headcount and consolidation of corporate offices. Company expects to generate annual net savings of ~$100M starting 2021 with $50M in 2020. More details at September Investor Day. C2C transactions were up 1% yoy vs 2% in 1Q19. In NA, management noted strength in U.S. to Mexico and U.S. to LAC but U.S. domestic was soft as revenue was up 2% (2% CC) yoy.”

According to TipRanks.com, Grondahl is a 5-star analyst with an average return of 16.5% and a 59.3% success rate. Grondahl covers the Financial sector, focusing on stocks such as Front Yard Residential Corporation, Altisource Portfolio Solutions SA, and Health Insurance Innovations.

The word on The Street in general, suggests a Hold analyst consensus rating for Western Union with a $18.50 average price target.

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Western Union’s market cap is currently $9.08B and has a P/E ratio of 11.69. The company has a Price to Book ratio of -24.40.

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The Western Union Co. is a holding company, which engages in the provision of money transfer and payment services. It operates through the following segments: Consumer-to-Consumer; Business Solutions; and Other. The Consumer-to-Consumer segment facilitates money transfers between two consumers.

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