Michael Diana, an analyst from Maxim Group, reiterated the Buy rating on Abacus Life (ABL – Research Report). The associated price target remains the same with $14.00.
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Michael Diana’s rating is based on Abacus Life’s impressive financial performance and strategic positioning in the market. The company exceeded expectations in its first quarter of 2025, surpassing consensus estimates by 11% in revenue, 21% in adjusted EBITDA, and 12% in adjusted net income per share. This strong performance was driven by contributions from its core life insurance settlements unit and its newly acquired asset management unit.
Additionally, Abacus Life operates in a large and growing market with significant potential, as life insurance settlements represent an untapped opportunity with a market size of approximately $250 billion. The company’s financial health is robust, with substantial capital raised and a positive cash flow outlook for 2025, eliminating the need for additional capital raising in the near future. These factors, combined with a valuation that presents a discount compared to its peers, support the Buy rating with a price target of $14, indicating a potential upside of 59%.
In another report released on May 9, Piper Sandler also maintained a Buy rating on the stock with a $12.00 price target.
ABL’s price has also changed slightly for the past six months – from $8.220 to $8.700, which is a 5.84% increase.