Barclays Maintains an 'Overweight' on Western Union (WU); World Bank Forecast Highlights Resilience of Global Remittance Trends
Tweet
Share
E-mailGet Alerts WU Hot Sheet
Price: $7.30 +0.14%
Rating Summary:
4 Buy, 20 Hold, 12 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 20 Hold, 12 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Barclays maintains an 'Overweight' on Western Union Co. (NYSE: WU) price target of $24.00.
Barclays analyst says, "The World Bank issued updated forecasts for global remittance growth through 2013, and introduced an estimate for 2014...The World Bank's release notes a few unusual factors that helped 2011 remittance in certain regions (higher oil prices supporting Russia-outbound remittance, currency depreciation that encouraged inbound remittance) and acknowledges potential risks (persistently high unemployment in the U.S./Europe, political aversion to immigration, and volatility in exchange rates and commodity prices). That said, the World Bank's forecasts and discussion of remittance trends were broadly encouraging, and supportive of our view that WU is likely to demonstrate greater earnings resilience than is priced into the shares at current levels."
"We are introducing our updated model incorporating the Travelex deal, reducing our EPS for FY11/12 by $0.02/$0.03, respectively (given near-term GAAP dilution)." (New FY11 EPS estimate is $1.56 and FY12 is $1.72)
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 $17.43 yesterday.
Barclays analyst says, "The World Bank issued updated forecasts for global remittance growth through 2013, and introduced an estimate for 2014...The World Bank's release notes a few unusual factors that helped 2011 remittance in certain regions (higher oil prices supporting Russia-outbound remittance, currency depreciation that encouraged inbound remittance) and acknowledges potential risks (persistently high unemployment in the U.S./Europe, political aversion to immigration, and volatility in exchange rates and commodity prices). That said, the World Bank's forecasts and discussion of remittance trends were broadly encouraging, and supportive of our view that WU is likely to demonstrate greater earnings resilience than is priced into the shares at current levels."
"We are introducing our updated model incorporating the Travelex deal, reducing our EPS for FY11/12 by $0.02/$0.03, respectively (given near-term GAAP dilution)." (New FY11 EPS estimate is $1.56 and FY12 is $1.72)
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 $17.43 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Bernstein remains bullish on SpaceX but sees challenges in telecom ambitions
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
