UPDATE: Wolfe Research Downgrades Western Union Co. (WU) to Underperform

(Updated - July 20, 2022 9:04 AM EDT)

Wolfe Research analyst Darrin Peller downgraded Western Union Co. (NYSE: WU) from Peerperform to Underperform with a price target of $17.00.

The analyst comments "We see WU’s stock as fairly valued at this time near $17, leading to a relative underperform rating and little upside potential in 2022. Earnings power has been reset due to the loss of 1) Business Solutions segment sold to Private Equity and 2) Russia/Belarus revenues and Sberbank partnership that accounted for ~5% of total revenues at higher profitability. As a result, WU is left with a C2C retail business struggling to inflect back to positive growth and a digital business in Wu.com that continues to cede market share and faces tough compares throughout 2022. WU did receive $800 after-taxes from the sale of Business Solutions providing, remains profitable with operating margins ~20% and continues to return capital to investors via dividends and buybacks – limiting downside to shares from here."

For an analyst ratings summary and ratings history on Western Union Co. click here. For more ratings news on Western Union Co. click here.

Shares of Western Union Co. closed at $16.90 yesterday.

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