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Investing.com - RBC Capital has lowered its price target on Western Union Co. (NYSE:WU) to $9.00 from $13.00 while maintaining a Sector Perform rating on the stock. The stock currently trades at $8.18, near its 52-week low of $7.99, with a notably low P/E ratio of 3.05.
The price target reduction follows Western Union’s missed expectations on revenue and adjusted earnings per share, according to RBC Capital analyst notes released Tuesday.
The financial services company is facing headwinds in the United States stemming from immigration policies that are currently impacting transactions from the U.S. into Latin America, raising questions about the outlook for the company’s CMT (Consumer Money Transfer) growth.
RBC Capital noted that offsetting the CMT weakness is strength in Consumer Services, supported by inorganic contribution from eurochange and favorable European travel conditions.
The investment firm expects the macroeconomic environment and Western Union’s guidance reduction to weigh on the company’s shares until proof-points of improvement are demonstrated.
In other recent news, Western Union reported its second-quarter 2025 earnings, which revealed a slight miss on both earnings per share (EPS) and revenue compared to forecasts. The company’s adjusted EPS was $0.42, slightly below the expected $0.44, and revenue came in at $1.03 billion, just shy of the anticipated $1.04 billion. Following these results, several financial firms adjusted their outlooks on Western Union. UBS reduced its price target for the company to $8.50 from $10.50, maintaining a Neutral rating. Similarly, Susquehanna lowered its price target to $9.00 from $11.00, citing challenges related to macro migration trends impacting revenue in North America and Latin America. Keefe, Bruyette & Woods (KBW) also decreased its price target to $10.00 from $11.00, following weaker top-line growth expectations. JMP reiterated its Market Perform rating, noting the impact of U.S. immigration policies on send volume. These developments highlight the ongoing macroeconomic challenges facing Western Union.
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