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Piper Sandler reiterated its Overweight rating and $12.00 price target on Abacus Life Inc. (NASDAQ:ABL) Thursday following the company’s investor day in New York City. With the stock trading at $5.84, significantly below its 52-week high of $11.86, InvestingPro analysis suggests the stock is currently undervalued. The event came shortly after Abacus was targeted in a short report last week.
During the investor day, Abacus executives including CEO Jay Jackson, CFO Bill McCauley, and Chief Capital Officer Elena Plesco presented to investors and addressed allegations from the short report, defending the company’s business model, strategy, and outlook.
Abacus management reaffirmed its 2025 guidance and projected growth in assets under management (AUM) along with a more balanced revenue model in coming years. The company indicated that the supply of life settlement policies exceeds the capital Abacus can currently deploy, creating potential for continued expansion.
The life settlement firm highlighted Abacus Asset Group as a key driver for future growth. Management maintained that its business model remains durable despite recent challenges.
Piper Sandler analyst Crispin Love described the investor day as "an incremental positive," noting that "Abacus’ vision remains consistent and the model durable" in his assessment of the company’s presentation and response to the short seller allegations.
In other recent news, Abacus Global Management has confirmed its financial robustness by addressing allegations from a short-seller report that questioned the company’s valuation methods. The report accused Abacus of relying heavily on a single life expectancy provider, leading to inflated valuations. However, Abacus’s valuation was independently verified by Lewis (JO:LEWJ) and Ellis, confirming a portfolio valuation of $449 million, closely matching the company’s reported $446 million. Market analysts, including those from Autonomous/Bernstein and Piper Sandler, have maintained positive ratings on Abacus, with ratings such as "Outperform" and "Overweight."
In addition, Abacus has announced a $20 million share repurchase program, signaling confidence in its financial health. This buyback plan, effective for eighteen months, will be funded through existing cash reserves and anticipated future cash flows. CEO Jay Jackson expressed the board’s confidence in the company’s business model amidst the short attack. Abacus also plans to pursue legal action against those responsible for the short attack. These developments reflect the company’s commitment to transparency and shareholder value.
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