Cantor Fitzgerald has opened research coverage on Western Union Co. with an Underweight recommendation and set a price target of $9.00, the firm said on Tuesday. That target sits below the prevailing share price of $9.50.
In its analysis, Cantor Fitzgerald recognized that Western Union's leadership has achieved notable progress in strengthening the business. The firm also pointed to the company's active capital-return program and robust profitability metrics: InvestingPro data shows an aggressive pace of share repurchases and a reported return on equity of 98%.
Despite those improvements, Cantor Fitzgerald emphasized structural challenges tied to Western Union's expansive brick-and-mortar footprint. The analyst argued the company's retail-heavy network leaves it at a disadvantage versus remittance competitors that started as digital-first platforms. That competitive dynamic, the report noted, contributes to its Underweight stance.
The firm outlined several specific headwinds that could constrain the company's trajectory. Among these are potential shifts in U.S. immigration policy, evolving regulatory actions affecting payments, and broader market sentiment toward stablecoins. At the same time, Cantor Fitzgerald acknowledged constructive developments within Western Union's Consumer Services and Branded Digital segments.
On valuation, Cantor Fitzgerald's $9 price target corresponds to roughly 4.5 times its fiscal 2027 earnings-per-share estimate of $1.97. The firm observed that at roughly 5 times fiscal 2027 price-to-earnings, downside appears limited. As a point of comparison, Western Union currently trades at a P/E of about 4.08, which InvestingPro flags as a relatively low earnings multiple against near-term growth potential.
The analyst report also highlighted Western Union's pending acquisition of Intermex, a transaction expected to close in mid-2026. Cantor Fitzgerald said the deal would broaden the company's retail footprint. The firm listed several conditions that could create upside to their thesis, including a successful turnaround of retail operations, realization of higher-than-expected synergies from the Intermex integration, and the possibility of additional strategic acquisitions.
Recent corporate actions and targets were also noted. Western Union declared a quarterly dividend of $0.235 per share, payable December 31, 2025, to shareholders of record on December 22, 2025. The company has published growth targets aiming for roughly 20% revenue expansion to about $5 billion by 2028, and a 30% increase in adjusted earnings per share to a range of $2.15 to $2.45. Management frames those targets as part of a strategic transition toward becoming a digital-first financial services provider.
Other market participants have expressed caution as well. Morgan Stanley has reiterated an Underweight rating on Western Union while maintaining a $7.00 price target.
On the innovation front, Western Union plans to introduce a U.S. Dollar Payment Token, USDPT, along with a Digital Asset Network slated for availability in the first half of 2026. Cantor Fitzgerald's report noted that the stablecoin will be issued on the Solana blockchain by Anchorage Digital Bank, citing the company's broader efforts to adapt to changes in the payments and digital asset landscape.
Taken together, the report frames a company that has improved operationally and returned capital to shareholders, but which still faces strategic and regulatory challenges as it shifts toward a more digital-oriented model.
Analyst takeaway: Cantor Fitzgerald's initiation reflects cautious optimism about Western Union's internal progress while assigning greater weight to structural headwinds and emerging regulatory and market risks.