Goldman Sachs Downgrades Western Union Co. (WU) to Sell on Pricing and Sluggish Business Solutions
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Price: $13.29 -2.21%
Rating Summary:
4 Buy, 20 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
4 Buy, 20 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Goldman Sachs downgraded Western Union Co. (NYSE: WU) from Neutral to Sell with a price target of $12.00 (from $14.00).
The firm comments, "We downgrade WU to Sell from Neutral as we believe that some of the pricing and competitive pressure discussed by management during their 3Q12 results could be structural in nature. We have lowered our margin assumptions significantly, moreover, as we believe that both the price compression in its core remittance business and lackluster growth in its B2B business will weigh on the company’s near-term margin profile."
The firm lowered 2012/2013/2014 EPS forecasts to $1.61/$1.40/$1.50 from $1.62/$1.46/$1.61.
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 $13.67 yesterday.
The firm comments, "We downgrade WU to Sell from Neutral as we believe that some of the pricing and competitive pressure discussed by management during their 3Q12 results could be structural in nature. We have lowered our margin assumptions significantly, moreover, as we believe that both the price compression in its core remittance business and lackluster growth in its B2B business will weigh on the company’s near-term margin profile."
The firm lowered 2012/2013/2014 EPS forecasts to $1.61/$1.40/$1.50 from $1.62/$1.46/$1.61.
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 $13.67 yesterday.
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