Piper Sandler lowers Abacus Life stock price target to $10 from $12

Published 02/07/2025, 15:40
Piper Sandler lowers Abacus Life stock price target to $10 from $12

Investing.com - Piper Sandler has reduced its price target on Abacus Life Inc. (NASDAQ:ABL) to $10.00 from $12.00 while maintaining an Overweight rating on the stock. Currently trading at $5.26, the stock sits well below its 52-week high of $11.86, with InvestingPro data showing significant upside potential based on analyst consensus targets ranging from $12 to $15.

The price target adjustment comes after Abacus shares experienced a significant decline over the past month following a short report and warrant exchange announcement. The stock has fallen over 31% in the past six months, with InvestingPro analysis indicating the stock is currently trading below its Fair Value. Despite the reduction in price target, Piper Sandler views the recent stock downturn as a buying opportunity.

The research firm indicated that the short report lacks validity and does not change its fundamental thesis on the company. Piper Sandler expects Abacus to deliver solid second-quarter 2025 results and anticipates continued growth for the company.

According to Piper Sandler’s analysis, Abacus Life currently trades at approximately 5 times earnings. The firm forecasts significant revenue and earnings growth for the company going forward.

Piper Sandler also highlighted Abacus Life’s strong profitability metrics, noting expectations for adjusted EBITDA margins exceeding 55 percent.

In other recent news, Abacus Global Management, Inc. has filed a lawsuit against Coventry First LLC and its Chairman, accusing them of spreading false information to manipulate market sentiment. The lawsuit claims a multi-year effort to undermine Abacus, with allegations of misleading statements about its valuation practices. In another development, Abacus announced a warrant exchange offer aimed at simplifying its capital structure, allowing warrant holders to receive shares of common stock in exchange for their warrants. This move is expected to reduce potential dilution and provide more flexibility for future financing.

Additionally, Abacus recently held its annual meeting, re-electing three Class II directors and ratifying Grant Thornton LLP as its independent auditor. The company also addressed allegations from a recent short-seller report, reaffirming its balance sheet valuation and receiving support from independent actuarial firm Lewis (JO:LEWJ) and Ellis. Market analysts have maintained positive ratings on Abacus’s stock, with firms like Piper Sandler and Autonomous/Bernstein reiterating their support. Furthermore, Abacus emphasized its sophisticated valuation framework and commitment to transparency, while highlighting potential growth opportunities with the upcoming inclusion in the Russell indices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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