William Blair analyst Christopher Kennedy has maintained their neutral stance on WU stock, giving a Hold rating today.
Christopher Kennedy’s rating is based on the mixed performance observed in Western Union’s recent financial results. While the digital segment of the business shows promising growth, particularly with a 14% increase in transactions, the retail segment faces challenges, especially in the U.S.-Mexico corridor and the broader Latin America region. This divergence in performance between digital and retail channels suggests a cautious outlook.
Moreover, the company’s overall revenue was slightly below market expectations, and while adjusted EPS met the consensus, the operating margins were marginally lower than anticipated. Despite these challenges, management’s guidance remains optimistic, with expectations of margin expansion and the positive impact of the Eurochange acquisition. These factors collectively contribute to the Hold rating, reflecting a balanced view of potential growth and existing headwinds.
In another report released today, KBW also maintained a Hold rating on the stock with a $11.00 price target.