Nomura Securities maintains a 'Neutral' on Western Union (WU); Lowering Numbers on Q4 Results
Tweet
Share
E-mailGet Alerts WU Hot Sheet
Price: $7.45 -0.53%
Rating Summary:
4 Buy, 20 Hold, 12 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 20 Hold, 12 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Nomura Securities maintains a 'Neutral' on Western Union Co. (NYSE: WU) price target cut $1 to $19.
Analyst, Bill Carcache, said, "WU reported 4Q11 EPS of $0.73, or ~$0.38 excluding a $0.33 one-time tax benefit and a $0.02 gain related to FX forward contracts, versus our estimate $0.41 and consensus of $0.40. The quarter and 2012 outlook were largely disappointing in our opinion, and we expect shares to be under pressure. The company highlighted regulatory and/or competitive issues in: Russia, southern Europe, Mexico and China. In addition, management has set itself an aggressive target of growing its online and mobile revenues five-fold to $500 million by 2015. While we believe these investments are necessary for the company to stay relevant in a fast-changing P2P environment, we are skeptical on the long-term results. Our 2012/2013 EPS estimate goes to $1.70/$1.80 (from $1.74/$1.91). We are lowering our PT to reflect our view that the company will need to spend more on digital expansion."
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.
Analyst, Bill Carcache, said, "WU reported 4Q11 EPS of $0.73, or ~$0.38 excluding a $0.33 one-time tax benefit and a $0.02 gain related to FX forward contracts, versus our estimate $0.41 and consensus of $0.40. The quarter and 2012 outlook were largely disappointing in our opinion, and we expect shares to be under pressure. The company highlighted regulatory and/or competitive issues in: Russia, southern Europe, Mexico and China. In addition, management has set itself an aggressive target of growing its online and mobile revenues five-fold to $500 million by 2015. While we believe these investments are necessary for the company to stay relevant in a fast-changing P2P environment, we are skeptical on the long-term results. Our 2012/2013 EPS estimate goes to $1.70/$1.80 (from $1.74/$1.91). We are lowering our PT to reflect our view that the company will need to spend more on digital expansion."
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Stantec Inc. (STN:CN) (STN) PT Lowered to Cdn$169 at Desjardins
- Travel Food Services (TRAVELFO:IN) PT Raised to INR1,600 at ICICI Securities
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
NomuraSign 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!
