Join        Login             Stock Quote

Western Union (WU) Upgraded To 'Buy' By Deutsche Bank, PT Raised

 February 04, 2013 02:38 PM

(By Balachander) Western Union Co. (NYSE: WU) shares were upgraded to "Buy" from "Hold" and price target increased to $19 from $14 by Deutsche Bank (DB).

"Although sentiment remains negative on WU, we see a market setting up well for a WU turnaround," the bank wrote. "The macro environment appears to have bottomed globally and vols should begin to accelerate."

The bank said recent US housing starts bode well for migrant employment opportunities in construction (large migrant transfer base). In addition, the increased likelihood of US immigration reform (WU a long-time supporter) augurs well for WU to see increased vol.

[Related -Dividend Roundup: BDC, CM, DE, EMC, SALM, WU]

DB believes WU's decision to reset pricing down mid-single digits in 2013 will result in share gains. The bank sees 50 percent of the pricing change from one-time regulatory changes from the Southwest Border Agreement, with much of the remaining cuts as an extension in WU's strategy to embrace new distribution channels.

The bank expects WU to move pricing back to its normal 1 percent - 3 percent range in 2014 as revenue turns positive and margins accelerate. Importantly, DB said WU deserves a pricing premium due to its trusted brand, mass distribution capabilities (location, .com, mobile, etc.) and fully compliant platform.

Shares of the money movement and payment services provider advanced 1.74 percent to trade at $14.63 on Monday. The stock has been trading in the 52-week range of $11.93 to $19.82.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.