Zacks Reiterates “Neutral” Rating for Western Union (WU)
Western Union (NYSE:WU)‘s stock had its “neutral” rating reaffirmed by Zacks in a report issued on Friday, American Banking News reports. They currently have a $19.00 price objective on the stock. Zacks‘ price objective would suggest a potential upside of 2.70% from the stock’s previous close.
Zacks‘ analyst wrote, “Western Union’s second quarter earnings came in ahead of the Zacks Consensus Estimates, but fell short year-over-year. We are, however, optimistic about the company’s performance going forward, given its long-term growth momentum led by strategic investments in new products, services, and technology. However, rapid growth of other cheaper money transfer options may lead to competitive pressures. The company is focusing on three main areas – expanding the existing network and retaining and adding new customers to the consumer money transfer business creating a digital infrastructure to drive its electronic channels business, and finally, development of the business to business segment apart from ensuring successful integration of the Travelex business. Given the pace at which the company is aggressively making acquisitions, expanding its agent network, rolling out new products and services, we expect it to achieve long-term growth much ahead of its peers.”
Shares of Western Union (NYSE:WU) traded down 0.49% during mid-day trading on Friday, hitting $18.41. 3,341,331 shares of the company’s stock traded hands. Western Union has a one year low of $11.93 and a one year high of $19.14. The stock’s 50-day moving average is $18.05 and its 200-day moving average is $16.33. The company has a market cap of $10.161 billion and a price-to-earnings ratio of 11.68.
Western Union (NYSE:WU) last posted its quarterly earnings results on Tuesday, July 30th. The company reported $0.36 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.34 by $0.02. The company had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same quarter in the previous year, the company posted $0.46 earnings per share. The company’s revenue for the quarter was down 2.8% on a year-over-year basis. On average, analysts predict that Western Union will post $1.43 earnings per share for the current fiscal year.
A number of other firms have also recently commented on WU. Analysts at Deutsche Bank reiterated a “buy” rating on shares of Western Union (NYSE:WU) in a research note to investors on Thursday. They now have a $22.00 price target on the stock. Separately, analysts at JPMorgan Chase & Co. downgraded shares of Western Union (NYSE:WU) from a “neutral” rating to an “underweight” rating in a research note to investors on Wednesday, August 14th. They now have a $18.00 price target on the stock, up previously from $17.00. Finally, analysts at RBC Capital raised their price target on shares of Western Union (NYSE:WU) from $15.00 to $19.00 in a research note to investors on Thursday, August 1st. They now have a “sector perform” rating on the stock.
Four investment analysts have rated the stock with a sell rating, sixteen have issued a hold rating and five have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $17.63.
The Western Union Company (NYSE:WU) is engaged in money movement and payment services.
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