Western Union (WU) Stock Forecast & Price Target

Western Union shows a robust financial performance with Consumer Services reporting a significant year-over-year growth of 39% on a reported basis and 41% on an adjusted basis, driven notably by the eurochange acquisition and strong European travel trends. The retail segment, particularly in Europe, experienced solid revenue growth of 15% in both Spain and the UK, suggesting resilience in the company’s core markets. Additionally, the industry outlook for consumer remittances remains positive, projected to grow in the mid-single digits, bolstered by a steady flow of migrant workers, which supports ongoing growth in the company’s Branded Digital and Consumer Services segments.

Western Union's outlook is negatively impacted by management's acknowledgment of the adverse effects of U.S. immigration policies, which have led to a reduction in transactions and anticipated slower growth. The company reported an 8% year-over-year decrease in Consumer Money Transfer revenue and a 3% decline in transactions, particularly affecting its retail business in North America. Furthermore, management has lowered its guidance for fiscal year 2025, reflecting expected revenues between $4.085 billion and $4.185 billion, contributing to concerns over ongoing risks such as a prolonged global recession and increased regulatory scrutiny.