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ABL: Index Additions Will Offset Lower Margin Outlook Going Forward

Escalating Illiquidity And Regulatory Scrutiny Will Strain Asset Management

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ABL
AnalystLowTarget
Not Invested
Published 05 Sep 2025

Update shared on 14 Dec 2025

Fair value Decreased 10%
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AnalystLowTarget's Fair Value
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1Y
7.9%
7D
8.8%

Analysts have trimmed their price target on Abacus Global Management by approximately 10 percent to reflect expectations for slower revenue growth and lower profit margins, despite only a modest increase in projected future valuation multiples.

What's in the News

  • Abacus Global Management, Inc. (NasdaqCM: ABL) has been added to the Russell 2000 Index and related value, growth, dynamic and benchmark variants, expanding its visibility among small cap investors (Key Developments).
  • The company has joined the broader Russell 3000 and Russell 3000E indices, including both value and growth sub indices, signaling inclusion in a wide cross section of U.S. equity benchmarks (Key Developments).
  • Abacus now appears in multiple Russell 2500 indices, spanning growth, value, dynamic and benchmark constructions, which may support increased demand from actively managed and rules based strategies (Key Developments).
  • The stock has been added to several Russell Microcap indices, including growth and value benchmarks, potentially broadening its shareholder base among microcap focused funds (Key Developments).
  • Inclusion in specialized Russell Small Cap Completeness and style benchmarks further embeds Abacus in quantitative and passive investment universes that track or reference these indices (Key Developments).

Valuation Changes

  • Fair Value Estimate has fallen by 10 percent, from 10.0 to 9.0, reflecting a lower intrinsic value assessment per share.
  • Discount Rate has declined slightly, from 7.28 percent to 6.96 percent, implying a marginally lower required return on equity.
  • Revenue Growth has been reduced significantly, from 26.18 percent to 19.05 percent, indicating more conservative top line expectations.
  • Net Profit Margin has been cut markedly, from 58.92 percent to 42.10 percent, suggesting a weaker long term profitability outlook.
  • Future P/E multiple has risen modestly, from 7.61x to 7.89x, indicating a slightly higher valuation placed on forward earnings.

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