Deutsche Bank Maintains Hold on Western Union (WU)

Deutsche Bank is out with its report today on Western Union WU, maintaining Hold. In a note to clients, Deutsche Bank writes, "Overall vols should be positive, but Mexico/Gulf could weigh on sentiment nearterm. Proactive approach to cost savings under new leadership is notable, but mkt likely to pay more for scale-driven margin growth. Concern on V/MA forays into space overdone for now, but rising cost of compliance, growing mobile money transfer operators are threat to LT margins. Account-based/online platform growth should be solid, but prepaid is more excitement than earnings power for now, and we believe more of sizable cash should go to shareholders vs. initiatives like this." Deutsche Bank has a $19 PT on WU. Shares of WU closed Monday at $21.84, up 0.37% from Friday's close.