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Western Union price cuts may force MoneyGram to follow, says JMP Securities

JMP Securities notes that Western Union (WU) announced reduced remittance fees on transfers from the U.S. to Mexico and much of Latin America. The firm expects the cuts to force MoneyGram (MGI) to also lower fees in the regions, but by a much smaller percentage since MoneyGram’s prices are already below Western Union’s. JMP believes much of the pricing risk has been factored into shares of MoneyGram following the recent sell-off, however, and keeps an Outperform rating on the stock.