UPDATE: Compass Point Initiates Coverage On Western Union On Near-Term Catalysts, Ongoing Competitive Risk

In a report published Friday, Compass Point analyst Michael Tarkan initiated coverage on The Western Union Company (NYSE: WU) with a Neutral rating and $20.00 price target.

In the report, Compass Point noted, “We are assuming coverage of Western Union, Inc. (WU) with a Neutral rating and $20 price target. WU is the leading global money transfer and payment provider, with services offered in more than 200 countries. Western Union's brand recognition, expansive network, and geographic diversification have provided insulation against industry-wide pricing pressure and a heightened regulatory environment; and management has remained the most active among peers in returning capital to shareholders through buybacks and dividends. However, the company is not immune to competitive headwinds and while we see some catalysts ahead, current valuation appears balanced, with shares trading at 11x our 2015 EPS estimate and 10x our 2016 estimate.”

Western Union closed on Thursday at $18.28.