Morgan Stanley Maintains Overweight on Western Union (WU)

Morgan Stanley is out with its report today on Western Union WU, maintaining Overweight. In a note to clients, Morgan Stanley writes, "1Q results were right in line with our estimates on all major metrics that drive the stock. There wasn't enough there to inspire a buying frenzy, but also nothing to cause any concern about execution and F11 results either. Given recent flat absolute and relative under-performance vs the market and other processors and cyclicals, as well as Street expectations being realistic into the print, we wouldn't expect a material move (either way) in the stock near-term. At current levels, we still think the risk/reward is favorable for WU for those with a 12-month view, although we wouldn't be surprised if it took a little breather after being up 18% in the last 6 months (and 500 bps ahead of the market)." Shares of WU closed Tuesday at $21.53, up 0.94% from Monday's close.