UBS Initiates Coverage on Western Union (WU) with a Neutral
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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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UBS initiates coverage on Western Union (NYSE: WU) with a Neutral rating. PT $19.
UBS analyst says, "The strong fundamental characteristics of the core business (CY12E FCF of $1.3bn) are largely stable and should remain intact, though we see few near-term catalysts amid pricing challenges, uncertain strategies, and lagging global remittance volumes."
"WU shares screen attractively against our coverage universe, trading at just 10.3x CY12E EPS and 5.8x CY12E EV/EBITDA—a steep discount to the group, driven by: (1) general concerns over weak remittance volumes; (2) investor discomfort with WU’s strategic direction and capital allocation (i.e., large acquisitions and buybacks over dividends); and (3) worries about execution in both the C2C and B2B segments, both of which have struggled since the 2008/2009 financial crisis."
To See Ratings Summary & History on WU, Click Here
UBS analyst says, "The strong fundamental characteristics of the core business (CY12E FCF of $1.3bn) are largely stable and should remain intact, though we see few near-term catalysts amid pricing challenges, uncertain strategies, and lagging global remittance volumes."
"WU shares screen attractively against our coverage universe, trading at just 10.3x CY12E EPS and 5.8x CY12E EV/EBITDA—a steep discount to the group, driven by: (1) general concerns over weak remittance volumes; (2) investor discomfort with WU’s strategic direction and capital allocation (i.e., large acquisitions and buybacks over dividends); and (3) worries about execution in both the C2C and B2B segments, both of which have struggled since the 2008/2009 financial crisis."
To See Ratings Summary & History on WU, Click Here
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