Western Union Gains 3% On Walmart Deal
Western Union has inked a deal with Walmart to offer money transfer services at the retailer’s stores. Shares of the financial services company rose 3.3%.
Per the agreement, Western Union (WU) will offer services including domestic and international money transfers, money orders, and bill payments to more than 4,700 Walmart store locations across the US.
The roll-out of these services will begin in the spring of 2021 and would mark its debut at Walmart (WMT) stores. These services would also enable millions of US customers to send money, pay bills, and avail other financial services.
Earlier in November, Western Union made an acquisition agreement to buy a 15% stake in the digital payments company of Saudi Arabia’s STC Group for $200 million in cash. (See WU stock analysis on TipRanks)
Following the deal, BTIG analyst Mark Palmer maintained a Buy rating and a price target of $28 (27.7% upside potential) on the stock. The analyst said that the “deal should help to boost lagging domestic C2C [consumer-to-consumer] business.”
Meanwhile, the rest of the Street is sidelined on the stock. The analyst consensus of a Hold is based on 2 Holds, 3 Buys and 2 Sells. The average analyst price target of $24.43 implies upside potential of about 11.4% to current levels. Shares have declined 14.4% over the past year.
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