On Tuesday, Piper Sandler reaffirmed its confidence in Abacus Life Inc. (NASDAQ: ABL), maintaining an Overweight rating and a $12.00 price target for the company's stock.
Following Abacus Life's preannouncement of results on July 18 and the subsequent acquisition of Carlisle, the firm's analysis indicates that the actual results align with the preannouncement and have exceeded previous estimates.
Abacus Life demonstrated a robust deployment capacity, investing over $100 million in the quarter, which surpassed Piper Sandler's projection of $61 million. This performance indicates the company's efficient capital deployment following its recent offering. Despite management's communication that there would be no significant changes to the forecasted adjusted EBITDA, which is anticipated to be around $55 million in 2024, the firm suggests that management's outlook might be conservative, especially considering the strong performance in the second quarter of 2024.
Piper Sandler has adjusted its core earnings per share (EPS) projections for Abacus Life upward for the coming years. The firm now expects core EPS to be $0.54 in 2024, $0.71 in 2025, and $0.88 in 2026. These figures are an increase from the previous estimates of $0.50, $0.69, and $0.85 for the respective years.
Abacus has reported its financial results for the quarter ending June 30, 2024. The company has also announced significant expansions in its portfolio and assets under management (AUM) through the acquisition of FCF Advisors and Carlisle Management Company SCA, which are expected to add approximately $600 million and $2 billion to its AUM respectively. B.Riley Securities has revised its price target for Abacus Life to $15.00, maintaining a Buy rating.
The firm suggests that raised capital from a recent common stock offering and assumed debt could enable Abacus Life to acquire an additional $138 million in policies, potentially generating $27.6 million in gross revenue. In addition, Abacus Life has appointed Elena Plesco as its new Chief Capital Officer, who will oversee the company's capital management strategies and global expansion efforts. These are the recent developments for Abacus Life, Inc.
InvestingPro Insights
Abacus Life Inc. (NASDAQ:ABL) has been making notable strides, as reflected in the recent analysis by Piper Sandler. To provide further context on the company's financial health and stock performance, InvestingPro data reveals some key metrics. The market capitalization stands at $804.69 million, showcasing the company's scale in the market. Moreover, Abacus Life has demonstrated a significant revenue growth of 98.62% over the last twelve months as of Q2 2024, a testament to its rapidly expanding business operations.
Investors may also find the stock's recent return figures of interest. Abacus Life has seen a strong return over the last week with an 11.64% increase and an even more impressive 20.75% return over the last month. These figures could suggest a growing investor confidence in the company's near-term prospects. Additionally, the company's liquidity position is robust, with InvestingPro Tips indicating that its liquid assets exceed short-term obligations, which may provide some assurance regarding the company's financial resilience.
For those seeking a deeper dive into Abacus Life's financials and stock performance, there are over 8 additional InvestingPro Tips available, including expectations of net income growth this year and predictions of profitability. To explore these insights further, interested readers can visit InvestingPro's dedicated page for Abacus Life at https://www.investing.com/pro/ABL.
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