Goldman Sachs Downgrades Western Union to a “Sell” (WU)

Goldman Sachs reported on Wednesday that they have downgraded payment services company, The Western Union Company(WU) to a “Sell.”

The firm has lowered its rating on WU from “Neutral” to “Sell,” and has reduced its price target for the company from $14 to $12. This price target suggests a -14% decline from the stock’s current price of $13.67.

An analyst from the firm noted, “we downgrade WU to Sell from Neutral as we believe that some of the pricing and competitive pressure discussed by management during their 3Q12 results could be structural in nature. We have lowered our margin assumptions significantly, moreover, as we believe that both the price compression in its core remittance business and lackluster growth in its B2B business will weigh on the company’s near-term margin profile.”

Western Union shares were down 29 cents, or -2.12% during premarket trading Wednesday. The stock has declined -25% in the past year.

The Bottom Line
Shares of Western Union (WU) have a 3.66% dividend yield, based on last night’s closing stock price of $13.67. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $16 price level.

The Western Union Company(WU) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here