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Research Alert: CFRA Downgrades Opinion Of The Western Union Company To Strong Sell From Sell
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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.

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