UPDATE: JP Morgan Initiates Neutral, $20 PT on MoneyGram

JP Morgan initiates coverage on MoneyGram International, Inc.

with a Neutral rating and a $20 price target as it believes the stock already has priced in premium growth. JPM comments, “MGI is the second largest global money transfer provider with 4-5% market share, behind leader WU at 17% share. We expect continued market share gains for MGI (and WU) as a result of network effects from global expansion in agent locations, new products/partnerships and share gains from informal channels. MGI also outperforms WU, fueled by rapid growth in agent locations off a smaller base. We estimate MGI money transfer revenue to grow at a 9% CAGR from 2011-14 (vs. 4% for WU).” MGI closed at $17.09 per share on Tuesday.