Jefferies Maintains a 'Buy' on Western Union (WU); Lackluster Guidance, But Accumulate on Weakness
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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
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Jefferies maintains a 'Buy' on Western Union Co. (NYSE: WU) price target cut $1 to $23.
Jefferies analyst said, "4Q was generally in line, but with initial '12 guidance modestly light (top-line a little softer and no EBIT margin expansion), we expect shares of WU to trade lower tomorrow. We would use this as a buying opportunity because: 1) return of cash to shareholders should be robust again this year, 2) mgmt remains committed to post-'12 margin expansion, 3) significant growth is projected for the digital business, 4) attractive valuation."
"WU indicated share buybacks will resume in 1Q (but are likely to be more similar to '09/'10 levels than '11), and also announced a 25% dividend hike. We lowered our F12 revs/EPS to $5,768.3M/$1.67 vs. $5,813.8M/$1.79 prior."
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 $19.70 yesterday.
Jefferies analyst said, "4Q was generally in line, but with initial '12 guidance modestly light (top-line a little softer and no EBIT margin expansion), we expect shares of WU to trade lower tomorrow. We would use this as a buying opportunity because: 1) return of cash to shareholders should be robust again this year, 2) mgmt remains committed to post-'12 margin expansion, 3) significant growth is projected for the digital business, 4) attractive valuation."
"WU indicated share buybacks will resume in 1Q (but are likely to be more similar to '09/'10 levels than '11), and also announced a 25% dividend hike. We lowered our F12 revs/EPS to $5,768.3M/$1.67 vs. $5,813.8M/$1.79 prior."
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 $19.70 yesterday.
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