UPDATE: Credit Suisse Downgrades MoneyGram International to Neutral on Pricing Pressure
Credit Suisse reduced its rating on MoneyGram International (NYSE: MGI) from Outperform to Neutral and lowered its price target from $25 to $16.
Credit Suisse noted, "While MGI has been posting revenue and transaction growth ahead of its peers, we are concerned increased competition will result in pricing pressure, slowing revenue growth and margin expansion. Furthermore, we are concerned that increased regulatory scrutiny across the industry could negatively affect MGI. We prefer to move to the sidelines. Our $16 TP is predicated on 6.5x our 2014 adj. EBITDA (in-line with WU's trading multiple)."
MoneyGram International closed at $12.43 on Wednesday.
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