In today's trade, Western Union Company's stock is back from its recent highs after a truly impressive rally. It's far from ending the trend, but so far stocks are down nearly 4% from their last closing price.
From September 24 until now, shares are up 25% after posting better-than-expected reports.
Although the long-term prospects for revenue and growth are improving, in the short-term things have changed little. At least according to Guggenheim Securities.
Analyst Jeff Cantwell gave a downgrade from Buy to Neutral and removed its price target.
The company's shares reached $ 28 on Monday, with the risk-reward ratio looking balanced.
Analysts are confident that Western Union can generate double-digit revenue every year between 2020 and 2022. The support comes from strong revenue, expansion of the company and adjusted operating margins.
Guggenheim remains optimistic about the company's strategy, which includes offering a payment platform to financial institutions. White-label partnerships are also accelerating, enhancing revenue flow.
Western Union has also done everything they can to reduce their operating margin from 20% to 23%, which will solidify over the next 3 years.
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