Recent Results Support a More Pessimistic Long-Term View for Western Union

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 continue to believe Western Union has a narrow moat based on its sizable scale advantage, but with very 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.