Abacus Life’s Strong Fundamentals and Strategic Rebuttal Justify Buy Rating Despite Short-Seller Allegations

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.

Michael Diana has given his Buy rating due to a combination of factors surrounding Abacus Life’s recent activities and market positioning. A key element influencing this decision is Abacus Life’s proactive response to allegations made by Morpheus Research, a short-seller. The company issued a detailed rebuttal to claims that it overvalued its portfolio using unreliable life expectancy estimates. This response included a valuation from a reputable third-party actuarial firm, which supported Abacus Life’s valuation methods.
Furthermore, the upcoming Investor Day is expected to provide additional insights into Abacus Life’s strategic direction and counter the allegations made by Morpheus Research. Despite the short-seller’s report, Diana maintains the company’s price target at $14, reflecting confidence in Abacus Life’s valuation approach and market strategy. This target represents a significant upside potential, especially considering the stock’s recent decline. Diana’s analysis suggests that Abacus Life’s fundamentals remain strong, warranting a Buy rating.

In another report released on June 5, Piper Sandler also maintained a Buy rating on the stock with a $12.00 price target.

ABL’s price has also changed moderately for the past six months – from $7.920 to $6.130, which is a -22.60% drop .