Oppenheimer Initiates Coverage of The Western Union (WU) Stock With a Perform Rating

The Western Union Company (NYSE:WU) is one of the Most Undervalued Stocks Under $10 to Buy Now. Oppenheimer analyst Rayna Kumar initiated coverage of the company’s stock with a “Perform” rating. As per the firm, The Western Union Company (NYSE:WU) continues to make progress in protecting its market share via increased investments in digital capabilities, strategic pricing, and partnerships with Fintechs and card networks. That being said, the firm still remains on the sidelines until it sees clearer evidence of the sustained revenue growth turnaround.

Furthermore, The Western Union Company (NYSE:WU) has been facing headwinds due to the tightening US immigration policy, intensifying competition from digital-native players as well as aggressive pricing from legacy cash-to-cash money remittance providers, added the firm analyst. While The Western Union Company (NYSE:WU)’s digital strategy and partnerships are steps towards the right direction, the firm believes that such initiatives might not be sufficient to offset broad-based structural pressures.

Notably, in Q1 2025, The Western Union Company (NYSE:WU) saw its 8^th consecutive quarter of double-digit transaction growth for its Branded Digital business, highlighting the momentum amidst an uncertain macroeconomic environment. In Q1 2025, the company’s Branded Digital revenue rose 7% on a reported basis, or 8% on an adjusted basis, while transaction growth was 14% as compared to the prior-year period.

While we acknowledge the potential of WU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.