William Blair analyst Christopher Kennedy has maintained their neutral stance on WU stock, giving a Hold rating yesterday.
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Christopher Kennedy has given his Hold rating due to a combination of factors affecting Western Union’s performance. Despite positive developments in the digital remittance and consumer services segments, which contribute significantly to revenue, the sluggish performance of the consumer money transfer segment remains a concern. This segment, which accounts for a large portion of the company’s revenue, has not shown the desired growth.
Additionally, the company faces potential challenges from upcoming tax changes and migration-related headwinds, although there are signs of stabilization. While the attractive dividend yield and low price-to-earnings ratio might support the stock, Kennedy believes that a clear strategy for accelerating revenue growth and expanding beyond remittances is necessary. The company’s financial position is expected to improve post-2025, which could support dividends and share buybacks, but the current outlook warrants a Hold rating.
According to TipRanks, Kennedy is an analyst with an average return of -5.1% and a 35.94% success rate. Kennedy covers the Technology sector, focusing on stocks such as Remitly Global, Euronet Worldwide, and Jack Henry & Associates.
In another report released yesterday, Citi also initiated coverage with a Hold rating on the stock with a $9.00 price target.