UPDATE: Compass Point Upgrades MoneyGram International to Buy, Reiterates $23 PT as Takeover Talks Taper

In a report published Friday, Compass Point analyst Douglas Greiner upgraded the rating on MoneyGram International MGI from Neutral to Buy, and reiterated the $23.00 price target. In the report, Compass Point noted, “This week various news sources cited that takeover talks have tapered due to price. When the takeover news originally broke at the beginning of the summer the shares traded from under $19 up to $23. In our view, the pullback to under $19 is a buying opportunity. In summary, investors at today's prices have 3 ways to win -- (1) improving underlying performance, (2) multiple expansion, and/or (3) a takeout. We expect substantial EPS and EBITDA growth through 2015 driven by an improving end market, market share gains, and interest expense savings. MGI currently trades at a discount to WU in terms of EV/EBITDA despite that MGI's top line is growing high single digits versus low single digits at WU. Longer term a sale still remains plausible given that it would provide a smooth exit for private equity interests. Upgrading to Buy. Reiterate $23 PT.” MoneyGram International closed on Friday at $18.42.