Visa (V) Buy-Rated, Western Union (WU) Called 'Value Trap'

March 25, 2013 2:08 PM EDT
Get Alerts V Hot Sheet
Price: $81.59 +0.41%

Rating Summary:
    23 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 5 | New: 0
Trade V Now!
Join SI Premium – FREE
Shares of Visa (NYSE: V) traded higher on Monday, outperforming many other stocks in the financial sector. Analyst Bill Carcache from Nomura put out a note on the company, reiterating a Buy rating. Carcache also called Western Union (NYSE: WU) a "value trap".

"Although we're not necessarily looking for meaningful additional downside for WU, we do see near-term upside as limited and expect data points in 1H13 to support V vs. WU divergence," said the analyst.

"We continue to view WU as a value trap based on our belief that its core money transfer business is in secular decline. With competition from digital money transfer channels such as prepaid, mobile, and internet likely to continue to intensify, we expect future pricing degradation to continue to weigh on WU's revenue growth outlook,” added Carcache.

Nomura Securities has a price target of $172 on Visa. Western Union is rated Neutral with a price target of $13.

For an analyst ratings summary and ratings history on Visa (NYSE: V) click here. For more ratings news on Visa click here.

Shares of Visa closed at $160.09 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View

Related Entities


Add Your Comment