TD Cowen says still analyzing report on Abacus ‘but has doubts about accuracy’

Commenting on the report issued by a short seller making allegations against Abacus Global (ABL), TD Cowen says that while the firm is still looking into some of the claims, it feels the source cast some doubt. Additionally, Abacus’ model, reliant on direct originations and a short holding period, would seem to argue against overvaluation of policies. This report’s author holds a short position in Abacus, which could cloud its objectivity, TD Cowen also points out. Additionally, many allegations in the report seem to originate from a key competitor of the company. Relatedly, many of the allegations are not new, as this competitor has publicly questioned Lapetus LEs for over a year, it adds. The firm has a Buy rating on Abacus with a price target of $14.