Citigroup Maintains Buy on Western Union, Says to Look to Fundamentals

Citigroup has published a research report on Western Union

after the company disclosed its US Attorney subpoena. In the report, Citigroup writes, "In its 10Q released on May 1st, WU disclosed that it has been served with a grand jury subpoena from the US Attorney's Office related to the investigation of a former agent in California. There is a limited amount of information known by the company at this point and even less they can say to investors. Given the lack of details available, it is difficult to judge the potential impact from the case, if any – however we know from past experience with other stocks that the disclosure of a subpoena is typically a negative for the stock on the day of the disclosure. All we can really say here is that it is unlikely to affect the ongoing business, which as we know from the recent results is actually doing quite well. We encourage investors to focus on the fundamentals." Citigroup maintains its Buy rating and $24 price target on Western Union, which is currently trading down $0.26 from yesterday's $18.43 closing price.