Western Union (WU) Stock Forecast & Price Target

Western Union's Consumer Services segment demonstrated robust performance with a reported revenue increase of 39% year-over-year, showcasing its effective growth strategy. The company's retail business in Europe also exhibited resilience, achieving a 15% revenue growth in key markets such as Spain and the UK, further bolstered by its strong Travel Money offering nearing $100 million in revenue. Additionally, the overall consumer remittances market is projected to expand in the mid-single digits, supported by stable migrant worker flows, which bodes well for Western Union's long-term revenue potential.

Western Union's stock outlook appears negative due to management's acknowledgment of a decline in transaction volumes influenced by US immigration policies, which has particularly weakened the retail segment in North America. The company experienced an 8% year-over-year decrease in Total Consumer Money Transfer revenue, coupled with reduced guidance for FY25, indicating concerns over sustained revenue growth. Additionally, challenges such as a potential global recession, tighter immigration rules, and emerging competitive technologies pose further risks to the company's financial performance and long-term outlook.