Halister News

(Bloomberg) -- Western Union’s agreement to pay $586m for failing to stop money laundering and wire fraud has potential to “materially impact” stock repurchases, Jefferies analyst Jason Kupferberg writes in note.

• DOJ/FTC settlement is much larger than anticipated and “more than a ‘one-time’ charge,” as “knock-on effects” will probably persist; notes that fine represents more than 5% of WU’s market cap and 93% of U.S. cash on hand
• Reiterates hold, $19 PT; WU 4 buys, 16 holds, 8 sells, avg PT $20: Bloomberg data
• NOTE: Earlier, WU Said to Keep Compliance Spending Unchanged After Settlement; Western Union Probe May Benefit MoneyGram, Euronet: SunTrust
• NOTE: Feb. 19, Western Union Says U.S. Money Laundering Probe Tied to Gaming