Wells Fargo Starts MoneyGram International (MGI) at Outperform; Leveraging The Brand--Momentum Building

Wells Fargo initiates coverage on MoneyGram International (NYSE: MGI) with a Outperform. PT range $21-$23.

Wells analyst says, "In our opinion, MGI presents investors with an opportunity to invest in a story where a variety of company specific earnings levers coupled with a reasonably favorable macro-backdrop set the stage for double-digit EPS growth. Our EPS estimates for 2012/2013 are $1.31/$1.65. We believe revenue growth should be in the 7-8% range, while EBIT should grow 13%/8% in 2012/2013. Debt pay down should also help drive growth in core earnings of 9%/26% in 2012/2013, and discounted valuations should protect downside risk while providing ample room for stronger valuations over the next several years. Our target range is driven by our DCF model and we note that MGI's 6.8x EV/EBITDA is a discount to our universe's 7.5x."

For an analyst ratings summary and ratings history on MoneyGram International click here. For more ratings news on MoneyGram International click here.

Shares of MoneyGram International closed at $16.90 yesterday.

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