Western Union Faces a Difficult Environment

Western Union's performance in recent years has been weak, which we think has played into the idea that the company is being disrupted by newer players. But we think the pressures the company has faced historically will ease a bit going forward. We continue to believe Western Union has a narrow moat based on its sizable scale advantage, but with limited long-term growth prospects, the amount of value the moat will create could be questioned. Additionally, the company faces some political headwinds in the near term that will likely obscure any underlying improvements.