Monness Crespi Initiates Neutral Rating on Western Union Stock with $11 Price Target

Monness Crespi Initiates Neutral Rating on Western Union Stock with  Price Target

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On Wednesday, Monness Crespi Hardt began covering the shares of Western Union Co. (NYSE:), giving the stock a Neutral rating. The company has set a price target of $11, based on a base case analysis that projects 5.5x EBITDA over calendar year 2024. This valuation translates to approximately 7.5x times the projected P/E multiple for calendar year 2024.

The company’s base case analysis is based on estimated calendar year 2024 EPS of $1.65, which is slightly below the consensus of $1.70. In describing potential outcomes, Monness Crespi Hardt presented positive and negative scenarios. The optimistic scenario estimates calendar year 2024 EPS of $1.74 with an EPS multiple of 9 times, suggesting a potential stock price of $16. Conversely, the pessimistic scenario projects calendar year 2024 EPS of $1.56 with an EPS multiple of 6 times, indicating a stock price of $9.

Monness Crespi Hardt’s neutral stance reflects caution due to expected margin compression and near-term revenue growth challenges. The company notes that these obstacles will likely persist due to the need for promotional pricing measures aimed at driving transaction growth.

The $11 price target reflects a balanced view of Western Union’s financial outlook, taking into account current market conditions and company-specific factors that could influence its performance.

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