Western Union (WU) Stock Forecast & Price Target

Western Union's financial performance in 2024 showcased a significant uptick in consumer services, with reported growth of 39% year-over-year, underpinned by an impressive contribution from the eurochange acquisition. Notably, the company's retail business in Europe demonstrated resilience, achieving a 15% revenue growth in key markets such as Spain and the UK, while the Travel Money segment is projected to approach $100 million in revenue this year. Furthermore, the overall market for consumer remittances is anticipated to grow at a mid-single-digit rate, driven by a consistent flow of migrant workers, providing a favorable backdrop for Western Union's continued revenue growth in its Branded Digital and Consumer Services segments.

Western Union's outlook is negatively impacted by management's concerns regarding US immigration policies, which have led to a reduction in transactions and a forecast for slower growth, particularly in the retail business within North America. The company's total Consumer Money Transfer revenue declined by 8% year-over-year on a reported basis, reflecting a 3% decrease in transactions due to these policy changes. Additionally, management has lowered its fiscal year 2025 guidance for GAAP revenue, now expected to range from $4.085 billion to $4.185 billion, indicating an overall weakening performance and ongoing risks from economic and regulatory challenges.