Piper Jaffray Overweight On Western Union Co. (WU)

Piper Jaffray has an Overweight rating and a $23 price target on shares of Western Union Co. WU. In the research note sent to clients, Piper Jaffray writes, "WU shares substantially underperformed the market in '10. We believe WU shares could awaken in '11. We have grown increasingly confident in the global economy and the prospect for a modest recovery in global labor markets, which would boost WU's already accelerating money transfer business. Yesterday, the ADP survey showed a suprisingly strong gain in private payrolls, including the first increase in construction employment, WU's most important sector, since mid '07. We are maintaining our current estimates, but believe that improving employment trends are likely to drive upside to our revenue and EPS estimates and drive the valuation multiple higher. We find the risk/reward attractive and reiterate our Overweight rating/$23 price target." Shares of WU gained 33 cents yesterday to close at $18.94.