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Investing.com - Piper Sandler has reduced its price target on TWFG Insurance (NASDAQ:TWFG) to $32.00 from $38.00 while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock is currently trading at a P/E ratio of 97.4x and has declined nearly 8% year-to-date, though analysis suggests the stock may be undervalued at current levels.
The firm noted that TWFG reported earnings that beat both Piper Sandler’s expectations and consensus estimates, primarily due to better-than-expected non-operating items and taxes. The company maintains strong financial health with a current ratio of 4.59, indicating robust liquidity. InvestingPro analysis reveals 8 additional key insights about TWFG’s financial position.
Revenue and organic growth figures came in lower than anticipated, though adjusted EBITDA and adjusted EBITDA margin exceeded the firm’s expectations.
TWFG Insurance has revised its fiscal year 2025 guidance, lowering its organic growth forecast while raising its adjusted EBITDA margin guidance.
The price target adjustment reflects these mixed results, with Piper Sandler continuing to maintain its positive Overweight stance on the insurance company despite the reduced growth outlook.
In other recent news, TWFG Inc. reported its second-quarter earnings for 2025, revealing a 13.8% increase in total revenue, which reached $60.3 million. This growth was attributed to both organic expansion and strategic acquisitions. However, the company’s earnings per share (EPS) of $0.20 fell short of analysts’ expectations, which may have contributed to investor concerns. Despite the positive revenue figures, there were apprehensions about market conditions and future guidance. These developments are significant for investors assessing the company’s performance and future prospects. The earnings report highlights the challenges faced by TWFG Inc. in meeting market expectations.
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