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On Wednesday, Monness Crespi Hardt began coverage on shares of Western Union Co. (NYSE:), assigning a Neutral rating to the stock. The firm set a price target of $11, based on a base case scenario analysis which anticipates a 5.5 times Calendar Year 2024 EBITDA. This valuation corresponds to approximately 7.5 times the projected Calendar Year 2024 P/E multiple.
The firm’s base case scenario analysis is predicated on an estimated Calendar Year 2024 EPS of $1.65, which is slightly below the consensus of $1.70. In outlining potential outcomes, Monness Crespi Hardt provided upside and downside scenarios. The upside scenario estimates a Calendar Year 2024 EPS of $1.74 with a 9 times EPS multiple, suggesting a potential share price of $16. Conversely, the downside scenario forecasts a Calendar Year 2024 EPS of $1.56 with a 6 times EPS multiple, indicating a share price of $9.
The Neutral stance by Monness Crespi Hardt reflects caution due to expected margin compression and revenue growth challenges in the near term. The firm notes that these headwinds are likely to persist from the need for promotional pricing actions aimed at stimulating transaction growth.
The price target of $11 reflects a balanced view of Western Union’s financial prospects, taking into account the current market conditions and company-specific factors that could influence its performance.
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