Maxim has begun coverage on Abacus Global (ABL, Financial), assigning a Buy rating and setting a price target of $14. Abacus stands out as one of the leading companies in the life settlements sector, being the only one publicly traded in this niche that offers an alternative asset class distinct from traditional stock market investments. According to an analyst, with the acquisition of two asset management firms in the fourth quarter, Abacus is strategically positioned to more than double its revenue and adjusted EBITDA by 2026.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Abacus Global Management Inc (ABL, Financial) is $13.50 with a high estimate of $15.00 and a low estimate of $11.50. The average target implies an upside of 64.63% from the current price of $8.20. More detailed estimate data can be found on the Abacus Global Management Inc (ABL) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Abacus Global Management Inc's (ABL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ABL Key Business Developments
Release Date: March 27, 2025
- Total Revenue (Q4 2024): $33.2 million, a 40% increase year over year.
- Total Revenue (Full Year 2024): $111.9 million, a 69% increase year over year.
- Adjusted Net Income (Q4 2024): $13.4 million, a 126% increase year over year.
- Adjusted Net Income (Full Year 2024): $46.5 million, a 58% increase year over year.
- Adjusted IBEA (Q4 2024): $16.6 million, a 51% increase year over year.
- Adjusted IBEA (Full Year 2024): $61.6 million, a 57% increase year over year.
- Adjusted IBEA Margin (Q4 2024): 50% compared to 47% in the prior year.
- Adjusted IBEA Margin (Full Year 2024): 55% compared to 59% in the prior year.
- GAAP Net Loss (Q4 2024): $18.3 million, primarily due to non-cash stock-based compensation and acquisition-related expenses.
- Capital Deployed (Q4 2024): $96.6 million, a 41% increase year over year.
- Policies Originated (Q4 2024): 214 policies.
- Assets Under Management (Acquisitions): Approximately $2.6 billion added through acquisitions.
- Cash and Cash Equivalents (End of 2024): $128.8 million.
- Outstanding Long-term Debt (End of 2024): $342.4 million.
- Adjusted Return on Equity (Full Year 2024): 17%.
- Adjusted Return on Invested Capital (Full Year 2024): 15%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Abacus Global Management Inc (ABL, Financial) achieved a 40% year-over-year increase in total revenue for Q4 2024, reaching $33.2 million.
- The company recorded a 126% growth in adjusted net income for Q4 2024, amounting to $13.4 million.
- Abacus successfully completed two strategic acquisitions, adding approximately $2.6 billion in assets under management.
- The company raised $181.7 million in additional equity through oversubscribed offerings, enhancing its liquidity position.
- Abacus initiated a strong 2025 outlook, projecting adjusted net income growth between 51% and 68%.
Negative Points
- The company reported a GAAP net loss attributable to stockholders of $18.3 million for Q4 2024, primarily due to non-cash stock-based compensation and non-recurring acquisition expenses.
- Operating expenses increased significantly to $45.5 million in Q4 2024, compared to $18.9 million in the prior year.
- The adjusted EBITDA margin decreased to 55% for the full year 2024, down from 59% in the prior year.
- Abacus's balance sheet showed outstanding long-term debt of $342.4 million as of December 31, 2024.
- The company faces risks and uncertainties related to forward-looking statements, which could materially affect future results.
