Western Union, the Financial sector company, was revisited by a Wall Street analyst today. Analyst James Faucette from Morgan Stanley maintained a Sell rating on the stock and has a $7.00 price target.
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James Faucette has given his Sell rating due to a combination of factors impacting Western Union’s performance. The company is experiencing declining revenue trends in North America, particularly in the US to Mexico corridor, which has been exacerbated by a challenging macroeconomic and political environment. The increase in deportations has led to decreased transaction volumes, although the average transaction size has increased.
Additionally, the recently implemented 1% tax on remittances, despite its exemption for digital and card-based transactions, still poses a challenge to Western Union’s traditional business model. While management views this as an opportunity to accelerate their digital transition, the uncertain immigration policies and emerging competition from Stablecoin further intensify the competitive landscape. These factors collectively contribute to a less favorable outlook for Western Union, justifying the Sell rating.
In another report released on July 16, J.P. Morgan also maintained a Sell rating on the stock with a $11.00 price target.