Western Union Plans Turnaround, Projects Earnings of $2.45 per Share by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 59m ago
0mins
Source: Fool
- Sustained Profitability: Despite competition from online remittance platforms, Western Union remains profitable, consistently paying a quarterly cash dividend of $0.235, with a payout ratio around 55%, indicating a sustainable forward dividend yield of 10.3%.
- Promising Turnaround Plan: During its Nov. 6 Investor Day, Western Union outlined a goal of 20% revenue growth from 2026 to 2028, with projected earnings of $2.15 to $2.45 per share by 2028, which could significantly boost its stock price if achieved.
- Value from Acquisition: The company is in the process of acquiring Latin America-focused competitor International Money Express, which is expected to be immediately accretive to shareholders, further supporting its transition to a digital-first payments company.
- Attractive High Yield: Currently trading at just 5.1 times forward earnings, Western Union's stock could potentially double in two years if market sentiment improves, combined with a high dividend yield of 9.91%, making it an attractive option for investors.
Analyst Views on WU
Wall Street analysts forecast WU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WU is 9.00 USD with a low forecast of 7.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
0 Buy
7 Hold
4 Sell
Moderate Sell
Current: 9.410
Low
7.00
Averages
9.00
High
10.00
Current: 9.410
Low
7.00
Averages
9.00
High
10.00
About WU
The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments. Its segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from its retail agent and owned locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The Company provides its services primarily through a network of agent locations in more than 200 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
