UPDATE: JP Morgan Maintains Overweight, Raises PT to $23 on Western Union

JP Morgan reiterates its Overweight rating on Western Union (NYSE: WU) and raises its price target on the stock to $23 from $22 per share as it updates estimates for following a settlement with the IRS that will significantly reduce tax liability.

JPM comments, "WU announced it has reached an agreement with IRS related to the restructuring of its international operations in 2003. The US operations had transferred certain intangible assets to the company's international ops. in 2003 and has been receiving royalty income since then. IRS proposed a higher dollar value for the initial transaction and royalty, implying higher US income and taxes. The company had been recording tax reserves for the issue (of ~$100M each year, $700M as of F3Q11), and had also made a $250M deposit with the IRS in F1Q10."

WU closed at $17.35 per share on Thursday.