11:32 AM EDT, 07/29/2025 (MT Newswires) -- Western Union ( WU ) faces an "impaired" outlook for revenue and profit growth in North America as competition intensifies in an "increasingly negative" macro and political environment, Morgan Stanley said Tuesday in a report.

North America revenue fell 11% in Q2, driven in part by declining outbound remittances, notably in the US-Mexico corridor, as rising deportations reduce the number of in-person money transfer transactions, the report said.

A tax on certain remittances, immigration uncertainty and competition from stablecoin providers are compounding the challenges facing Western Union ( WU ), the report said.

Morgan Stanley projects 2025 of $4.06 billion, a 3.5% decline from a year earlier, versus an earlier projected drop of 3.2% decline estimate. Persistent immigration-related pressure may result in flat revenues of $4.05 billion in 2026 and adjusted EPS of $1.78.

Morgan Stanley cut its price target on Western Union ( WU ) stock to $7 from $9 and maintained its underweight rating.

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