Morgan Stanley Downgrades The Western Union Company On Challenging Long-Term Outlook

In a report published Monday, Morgan Stanley analyst Smittipon Srethapramote downgraded the rating on The Western Union Company WU from Equal-Weight to Underweight, and lowered the price target from $17.00 to 16.00. In the report, Morgan Stanley noted, “We believe that WU's profitability may continue to remain pressured over the medium-term from both rising competition and rising costs. Valuation appears reasonable, but we see downside risk to consensus estimates and see better risk/reward elsewhere.” The Western Union Company closed on Friday at $17.00.