The Western Union Company (NYSE: WU) is suffering beyond just a bad earnings report. With so many woes in Europe and with immigration fears abound, the expected digital growth ambitions going from $100 million to $500 million in the years ahead has some analysts and investors concerned that the company is not just in a one-quarter trap here.
The company is projecting only 2% to 4% growth on a constant currency basis now. Citigroup believes that the numbers may be conservative rather than so negative. The firm noted that guidance has been conservative over the last couple of years.
The regulatory and environmental issues that hurt in the last quarter may interrupt that optimism from Citigroup. Immigration issues and tracking are always a bit of a wild card.
After a 9.8% drop to $17.76, the consensus target is now probably under $22 per share after the adjustments from analysts is made and the 52-week trading range is $14.55 to $22.03.
The market cap of $11 billion of Western Union is hardly weighing on shares of Moneygram International, Inc. (NYSE: MGI) with a drop of 0.27% at $18.64 against a 52-week range of $15.90 to $33.12.
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