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- BTIG lowers its rating on Western Union Company (NYSE:WU) to Neutral from a prior stance of Buy on concerns the money transfer platform could face pressure from crypto alternatives and the new Facebook app.
- Analyst Mark Palmer: "Our newly cautious stance on WU reflects our view that the company's money transfer platform is likely to face increasing pressure from free alternatives, such as the new digital remittance app that Facebook yesterday announced as the subject of a pilot program in the U.S. and Guatemala."
- Palmer and team dig into the potential negative impact on Western Union from the advent of blockchain-based remittance options, such as the service that Zap Solutions' Strike launched earlier this year in El Salvador that offers free, instant money transfers.
- Shares of Western Union are down 1.69% premarket and trade below their 50-day, 100-day and 200-day moving averages.