Western Union (WU) Stock Forecast & Price Target

Western Union's Consumer Services segment experienced a significant revenue increase of 39% year-over-year, driven in part by the eurochange acquisition, which contributed over half of the adjusted growth. The company also reported robust growth in its retail business across key European markets, achieving a 15% revenue increase in both Spain and the UK, alongside a strong performance in the Travel Money business projected to reach nearly $100 million this year. Furthermore, the overall market for consumer remittances is set to grow in the mid-single digits, supported by a stable flow of migrant workers, which bodes well for Western Union's ongoing financial performance.

Western Union's outlook is negatively impacted by management's acknowledgment of reduced transaction volumes stemming from changes in U.S. immigration policies, resulting in a 3% year-over-year decline in transactions. Furthermore, the company's total Consumer Money Transfer revenue has decreased by 8% year-over-year, with guidance for fiscal year 2025 being lowered to $4.085 billion to $4.185 billion, down from a prior range of $4.090 billion to $4.190 billion. The retail segment, particularly in North America, has experienced significant weakness, compounded by risks related to a potential global recession, shifts in employment among migratory workers, and increased competitive pressures.