WU Western Union Company

We are upgrading our recommendation on Western Union (WU) to Outperform from Neutral before its third quarter earnings release, as we believe that the leading global money transfer company is set to benefit from a growing remittances market. The Zacks consensus estimates third quarter earnings at 39 cents per share, which translate into an expected earnings growth of 11.7% year over year.

We believe Western Union's strong branding, network expertise, diversified portfolio, financial strength and restructuring initiatives will deliver long-term profitability. Moreover, transaction, revenue and pricing trends are recovering gradually.

We remain encouraged by management's initiatives to increase investments in technology and expand agencies. Recent acquisitions also augur well for the company.
 
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