In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on Abacus Life (ABL – Research Report), with a price target of $14.00.
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Michael Diana has given his Buy rating due to a combination of factors including Abacus Life’s strategic acquisitions and reaffirmed financial guidance. The company recently acquired two asset management firms, Carlisle Management and FCF Advisors, which are expected to significantly contribute to the company’s growth by increasing assets under management to $10 billion over the next two years. This expansion is anticipated to enhance profitability, aligning with the company’s optimistic outlook for its life insurance settlements business.
Additionally, Abacus Life has effectively addressed concerns raised by a short seller report, which questioned the reliability of life expectancy estimates used in valuing its portfolio. The company provided a valuation from a third-party actuarial firm that supported its own assessments, thus refuting the short seller’s claims. This, combined with a history of audited results and transactions with reputable buyers, supports the analyst’s confidence in the company’s valuation. The $14 price target reflects a favorable valuation compared to industry peers, offering a substantial upside potential for investors.
According to TipRanks, Diana is a 2-star analyst with an average return of 0.0% and a 49.51% success rate. Diana covers the Financial sector, focusing on stocks such as Abacus Life, SWK Holdings, and Cullen/Frost Bankers.
In another report released on June 13, Piper Sandler also maintained a Buy rating on the stock with a $12.00 price target.