Topeka Capital Starts Western Union Co. (WU) at Hold

Topeka Capital initiated coverage on Western Union Co. (NYSE: WU) with a Hold rating and a price target of $19.00.

Analyst John T. Williams said, "WU remains a business in transition, and though the shares trade at a 5-multiple discount to the group, we believe a lower multiple is justified given low visibility, execution challenges, continued regulatory and compliance hurdles, an extended recovery period for customers of the company’s core business, and ongoing concerns about margins and pricing. Our 2015/2016 EPS estimates are very modestly above consensus, but we believe shares will remain range-bound absent a catalyst as investors continue to question the company’s strategy and long-term sustainability of its pricing structure."

For an analyst ratings summary and ratings history on Western Union Co. click here. For more ratings news on Western Union Co. click here.

Shares of Western Union Co. closed at $18.29 yesterday.

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