Western Union stock price target lowered to $10 at KBW on macro headwinds

Investing.com - Keefe, Bruyette & Woods (KBW) lowered its price target on Western Union Co. (NYSE:WU) to $10.00 from $11.00 on Tuesday, while maintaining its Market Perform rating on the stock.

The price target reduction follows Western Union’s second-quarter 2025 results, which prompted KBW to lower its earnings per share estimates for both 2025 and 2026, primarily due to weaker top-line growth expectations. This aligns with InvestingPro data showing a 5.15% revenue decline in the last twelve months. Get access to 6 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

KBW cited geopolitical impacts around migration that have created remittance headwinds in the U.S.-to-Mexico corridor, Western Union’s largest market, as well as broader Latin American corridors, driving the overall outlook lower despite outperformance in Consumer Services.

The research firm noted that while the anticipated remittance tax headwind in 2026 appears manageable, especially if debit adoption increases, concerns remain about the volatile backdrop as Western Union’s management has limited visibility on whether the current headwinds have stabilized.

Western Union continues to face challenges in its core money transfer business as geopolitical factors affect migration patterns and remittance flows in key markets.

In other recent news, Western Union Co. reported its second-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue against analyst forecasts. The company’s adjusted EPS was $0.42, falling short of the expected $0.44, representing a 4.55% negative surprise. Revenue was reported at $1.03 billion, slightly below the anticipated $1.04 billion, a 0.96% shortfall. These results were primarily influenced by macroeconomic pressures, particularly related to U.S. immigration policies, which negatively impacted send volume. JMP has maintained its Market Perform rating on Western Union stock, citing these ongoing macro challenges. The earnings announcement and subsequent analyst rating reiteration reflect the current hurdles facing the company. These developments are crucial for investors monitoring Western Union’s financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.