Michael Grondahl, an analyst from Northland Securities, maintained the Buy rating on Abacus Life. The associated price target remains the same with $13.50.
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Michael Grondahl has given his Buy rating due to a combination of factors that highlight Abacus Life’s strong financial performance and strategic initiatives. The company reported impressive third-quarter results, surpassing expectations in revenue, adjusted EBITDA, and earnings per share. This robust performance is complemented by a significant increase in origination capital deployment and the number of policies held, indicating strong operational growth.
Additionally, Abacus Life has implemented a comprehensive capital return program, including a $0.20 per share dividend and a $10 million share buyback, demonstrating a commitment to returning value to shareholders. The company’s recent $50 million securitization of life insurance policies is another strategic move that positions it for future growth by expanding its investor base and enhancing capital efficiency. These factors, along with raised guidance for fiscal year 2025, underscore a positive outlook for the company’s continued success.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $9.00 price target.