Northcoast Research Maintains The Western Union Company (WU) Buy Rating

Northcoast Research analysts Kartik Mehta and John Healy maintained their Buy rating and price target of $21 for shares of The Western Union Company (NYSE: WU).

The analysts said that the recent sell off of The Western Union Company shares was an opportunity to buy.

The fundamentals of the money transfer business remain strong, with millions of workers using money transfer agents to send money to their families in their home countries.

Western Union holds an estimated 17% market share of this $400 billion market and is in a position to increase market share.

The Northcoast Research analysts also wrote, "In addition, the company generates sufficient cash flow to continue its share repurchase strategy. WU also has a strong balance sheet with net debt of $1.4 billion. The balance sheet and cash flow would allow the company to pursue acquisitions while also pursuing a higher dividend strategy."