Deutsche Bank Maintains Hold, $19 on Western Union
Deutsche Bank reiterates its Hold rating and $19 target price on Western Union (NYSE: WU) as the company is well positioned to benefit from increased remittance flow and improved outlook, but weaknesses in US and Southern Europe continue.
On catalysts for WU, Deutsche Bank comments: “Yesterday, the World Bank (WB) released the 2011 remittance estimate for developing countries of $351B (8% Y/Y), $2bn higher than the forecast supported by better-than-expected remittance growth in Europe, Central Asia, and Sub-Saharan Africa partially offset by slowdown in inbound remittance in Latin America, Caribbean, Middle East and N Africa. WB also increased the remittance forecast for 2012 and 2013 by $2bn each to $377bn (7.3% Y/Y) and $406bn (7.9% Y/Y) respectively and introduced the forecast for 2014 of $441bn (8.4% Y/Y).”
WU closed at $17.44 per share on Wednesday.
