Western Union (WU) Stock Forecast & Price Target

Western Union demonstrated strong performance with a 39% year-over-year increase in Consumer Services revenue, highlighting the company's successful strategic initiatives, particularly related to its eurochange acquisition and growth in the Travel Money segment, projected to reach nearly $100 million this year. Additionally, the company's retail business in Europe has shown resilience, achieving a 15% revenue growth in key markets such as Spain and the UK, indicating a robust demand for money transfer services. The overall industry landscape remains favorable, with expectations of mid-single digit growth in consumer remittances, supported by a stable flow of migrant workers, underlining a positive outlook for Western Union's financial performance moving forward.

Western Union's financial outlook appears negative due to a significant decrease in total Consumer Money Transfer (CMT) revenue, which declined by 8% year-over-year, alongside a 3% reduction in transactions attributed to changing US immigration policies. Management has responded by lowering its FY25 guidance for GAAP revenue to a range of $4.085 billion to $4.185 billion, slightly down from previous estimates, highlighting concerns over weak performance in the North American retail business driven by these policy changes. Furthermore, risks such as a prolonged global recession, tighter immigration regulations, and increased competition may further strain the company's financial performance moving forward.