Western Union likely losing market share due to higher pricing - UBS

Euronet Worldwide

31/03/2022 11:48

** UBS starts coverage on money transfer platform  WU.N  
with "neutral" rating and PT of $19
    ** Says WU is likely losing market share, as its digital
pricing is higher than that of its competitors
    ** Digital pricing strategy to remain a key factor for
market share gains and losses, given the secular shift in money
remittance via online and apps - UBS 
    ** Brokerage's checks suggest WU prices largely above
Euronet and MoneyGram, implying price cuts may be required to
maintain market share 
    ** Says WU over the past two years reported the slowest
constant currency revenue growth among peers, reflecting its
market share loss to Euronet
    ** Brokerage believe continued market-share loss and pricing
pressure are likely priced-in in the current trading levels 
    ** Avg. Rating of 20 analysts covering WU is "HOLD"; median
PT is $20 - Refinitiv data
    ** WU shares rise 1.25% to $19.48 premarket; stock up ~8%
YTD as of Wednesday's close
      

 (Reporting by Amal S in Bengaluru)
 ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 3677;))