Goldman Sachs Downgrades Western Union Co. (WU) to Neutral

Goldman Sachs downgraded Western Union Co. (NYSE: WU) from Buy to Neutral with a price target of $14.00 (from $22.00) on weaker near-term outlook versus our expectations. They also expect the new announced price and cost initiatives to wipe out the prospects for 2013 EPS growth.

"Specifically, WU announced plans to implement price reductions in key corridors, investments in its digital offerings and other cost saving initiatives. As a result, we now expect 2013 constant currency revenues to decline and operating income to fall 10%-15% yoy," the analyst said.

The firm cut 2013/2014 EPS forecast by over 20%.

For an analyst ratings summary and ratings history on Western Union Co. click here. For more ratings news on Western Union Co. click here.

Shares of Western Union Co. closed at $12.73 yesterday.

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