Western Union Shares Drop As BofA Double Downgrades To Underperform

BofA analyst Jason Kupferberg downgraded The Western Union Co WU to Underperform from Buy with a price target of $20, down from $25. The price target implies an 8.4% upside.
Kupferberg sees "multiple potential headwinds." New CEO Devin McGranahan is a first-time CEO with limited strategic options.
Kupferberg believes the Street will continue to view Western Union mainly as a "show me" story even once McGranahan identifies his strategic priorities.
He also continues to see structural concerns related to competition from pure-play digital remittance providers and possible disruptive threats from newer technologies.
The Western Union Company is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows, and its leading global financial network bridges more than 200 countries and territories and over 130 currencies.
Price Action: WU shares traded lower by 4.07% at $17.70 in the premarket session on the last check Thursday.