Investing.com -- Monness Crespi Hardt downgraded Western Union (NYSE:WU) to "Sell" from "Neutral" and set a price target of $7.50, citing weakening trends in North America and structural concerns around the company’s digital and retail businesses.
The brokerage said revenue came in below consensus in the latest quarter, with particular softness in North America consumer money transfer, notably in retail and consumer services.
While digital remains a focus, analysts flagged growing concerns about customer retention and questioned the company’s pricing strategy.
We continue to see fair value around $7.50, the firm wrote, adding that 2025 earnings per share could come under pressure as Western Union faces mounting challenges in accelerating digital growth and stabilizing its retail segment.
The note also warned that further topline slowing could jeopardize Western Union’s ability to maintain its dividend, with digital and retail retention levels both tracking below earlier expectations.
Consumer services growth slowed sharply, and the brokerage questioned whether margin expansion in that segment can be sustained.
Monness suggested a long/short pair trade on Remitly (NASDAQ:RELY) and Western Union, citing stronger retention and revenue performance at the digital-first peer.