Western Union (WU) Stock Forecast & Price Target

Western Union has demonstrated significant growth, particularly in its Consumer Services segment, which reported a 39% year-over-year increase, primarily driven by the eurochange acquisition and a robust Travel Money business expected to approach $100 million this year. Additionally, the company is benefiting from a favorable market for consumer remittances, projected to grow in the mid-single digits, supported by a stable flow of migrant workers. The outlook for fiscal year 2025 remains positive, with expectations of continued growth in Branded Digital revenue, double-digit growth in Consumer Services, and improvements within the retail sector.

Western Union is experiencing a significant downturn, with total consumer money transfer revenue decreasing by 8% year-over-year and transactions declining by 3%, primarily attributed to the impacts of US immigration policy changes. Management has subsequently reduced its fiscal year 2025 guidance for GAAP revenue, indicating a less optimistic outlook for future growth. Furthermore, the company's retail business, particularly in North America, has shown weakness and faces additional risks from prolonged economic slowdowns, increased regulatory scrutiny, and the rise of disruptive competitive technologies.