William Blair analyst Christopher Kennedy has maintained their neutral stance on WU stock, giving a Hold rating on July 30.
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Christopher Kennedy has given his Hold rating due to a combination of factors influencing Western Union’s current market position and future prospects. The company’s recent acquisition of Intermex is a strategic move to strengthen its presence in Latin America and the retail channel, although it only slightly enhances its digital operations. The acquisition’s valuation is lower than similar fintech deals, reflecting geopolitical challenges and uncertainties in the U.S.–to–Latin America corridors, as well as the upcoming tax on cash-based remittances.
Despite Western Union’s attractive dividend yield and low price-to-earnings ratio, Kennedy sees the need for a clear strategy to boost revenue growth as a potential catalyst for the stock. The upcoming investor day is anticipated to provide updates on long-term growth targets and diversification efforts beyond remittances. While Intermex has set ambitious targets for 2027, the current macroeconomic environment presents challenges that could impact these goals, leading to the Hold rating.
According to TipRanks, Kennedy is an analyst with an average return of -4.1% and a 32.73% success rate. Kennedy covers the Technology sector, focusing on stocks such as Remitly Global, Evertec, and Cantaloupe.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $8.50 price target.