UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on The Western Union Company
In a report published Wednesday, Deutsche Bank reiterated its Hold rating on The Western Union Company (NYSE: WU), but lowered its price target from $19.00 to $14.00.
Deutsche Bank noted, “Market share losses build, cutting TP to $14. WU posted revs of $1.422bn (0.8% Y/Y, 3% cc), short of our $1.445bn est (2.4% Y/Y), and adj EPS $0.46 beat our $0.44 est partially on lower taxes ($0.01). With C2C txn growth slowing to 0% (3rd straight qtr of deceleration), WU faces market share challenges and continuing headwinds from soft macro and intensifying competition. Noting these pressures, the company cut 2012 guidance and gave a dire outlook for 2013. In a surprise move, WU terminated EVP Stewart Stockdale (formerly seen as a key leader). As a result, we are lowering our 2012 and 2013 EPS $0.06 and $0.42 to $1.68 and $1.49, respectively, maintaining our Hold rating, and cutting our TP.”
The Western Union Company closed on Tuesday at $17.93.
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