TWFG, Inc. Class A (TWFG – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Zaremski from BMO Capital maintained a Buy rating on the stock and has a $32.00 price target.
Michael Zaremski has given his Buy rating due to a combination of factors that highlight TWFG, Inc.’s strong performance and growth potential. The company preannounced better-than-expected fourth-quarter results for 2024, driven by higher written premiums and organic commissions, although this was slightly offset by lower other revenue. This positive performance has led to an increase in the adjusted EBITDA estimate for the fourth quarter by approximately 6% to $9.0 million, with future estimates for 2025 and 2026 also seeing slight increases.
Additionally, TWFG’s strategic growth initiatives, such as a significant increase in office locations following its IPO, signal robust expansion. The company’s exposure to surplus lines in key states like California, Florida, and Texas, which represent a substantial portion of E&S premiums, further supports its growth trajectory. Moreover, TWFG’s Up-C tax structure is expected to enhance its ability to pursue mergers and acquisitions, contributing positively to its EBITDA growth in the long term. These factors collectively underpin Zaremski’s optimistic outlook and Buy rating for TWFG, Inc.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $37.00 price target.
TWFG’s price has also changed slightly for the past six months – from $29.770 to $32.220, which is a 8.23% increase.