Strong Performance and Growth Potential Justify Buy Rating for TWFG, Inc.

William Blair analyst Adam Klauber has maintained their bullish stance on TWFG stock, giving a Buy rating today.

Adam Klauber has given his Buy rating due to a combination of factors that highlight TWFG, Inc.’s strong performance and future potential. The company reported a solid first-quarter performance with a 17% increase in revenue, of which 14% was organic growth, and a significant expansion in adjusted EBITDA margins. This growth was supported by better-than-expected commission rates, which helped counterbalance slightly lower premium growth.
Furthermore, TWFG is poised to benefit from improved conversion rates due to increased product availability and higher commission incentives from insurers. The company’s branch growth and robust M&A pipeline provide a clear path to approximately 20% growth in the coming years. Additionally, management’s upward revision of 2025 revenue and adjusted EBITDA guidance, along with a favorable valuation compared to peers, underscores the stock’s strong compounding ability and potential for upside, justifying the Buy rating.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $35.00 price target.