We are initiating coverage on Western Union Co. (WU) with an Underperform rating. The company’s fourth quarter earnings narrowed compared to the prior-year quarter as a result of lower transaction volumes due to ongoing market challenges and the dilutive effects of recent acquisitions.
We believe that the company’s strong brand name, network expertise and financial strength will position it well for long-term profitability. However, given the slow pace of economic recovery, we would have to wait for some time to see any significant improvement.Zacks Investment Research
