financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Downgrades Opinion Of The Western Union Company To Strong Sell From Sell
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Downgrades Opinion Of The Western Union Company To Strong Sell From Sell
Jun 23, 2025 1:20 PM

03:45 PM EDT, 06/23/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target to $7 from $8.50 on a forward P/E of 4.0x our 2026 EPS estimate, a discount to the 14.8x peer average given inferior growth prospects and lower earnings performance. We trim our 2025 EPS by $0.06 to $1.66 (consensus: $1.78) and 2026's by $0.08 to $1.73 ($1.85). We project revenues of $4.09B (-3%) in 2025 and $4.19B (+2%) in 2026 as WU faces a classic disruption scenario, with digital transformation efforts failing to offset structural market share losses to more agile, lower-cost competitors. WU's revenue trajectory suggests a business in managed decline rather than successful transformation, with fundamental strategic missteps and demographic shifts creating persistent headwinds. While we expect revenue growth to improve modestly in 2026 and settle around 2% longer term, this significantly lags digitally focused competitors, creating an increasingly difficult competitive environment as WU must simultaneously defend declining market share while investing heavily in digital transformation.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
10-year US Treasury note: What it is and how to buy
10-year US Treasury note: What it is and how to buy
Oct 16, 2024
You may have heard investors refer to the 10-year Treasury yield before, and for good reason. It's one of the most widely followed government securities and is a key benchmark for other interest rates such as mortgages and corporate debt. Here's what you should know about the 10-year Treasury note, including how to add it to your portfolio. What is...
Should I take out student loans? Steps to help you decide
Should I take out student loans? Steps to help you decide
Oct 17, 2024
Key takeaways A student loan can be a valuable financial tool if it's part of a clear career plan. Average tuition costs can push the total bill for a four-year degree to over $100,000 even at an in-state public school. The more you borrow in student loans, the lower your return on education investment. The average bachelor's degree recipient...
What is the ROI of your college degree?
What is the ROI of your college degree?
Oct 13, 2024
Key takeaways The ROI on a college degree varies depending on your major, your school's cost of attendance and other factors. Researching the cost of the college you want to attend and comparing it to the potential salary data in your desired career can help you assess the potential ROI. Attending a top-ranked school may lead to a higher...
What income do you need to get a credit card?
What income do you need to get a credit card?
Oct 17, 2024
Key takeaways The CARD Act of 2009 pushed for issuers to make sure that credit card applicants would be able to pay off their card bills should they be approved. This led to issuers creating their own rules about how much income is required to get a credit card, as well as guidelines for related factors like credit limits and...
Copyright 2023-2025 - www.financetom.com All Rights Reserved