Maxim Group Sticks to Its Buy Rating for GWG Holdings

By Ryan Adsit

Maxim Group analyst Michael Diana reiterated a Buy rating on GWG Holdings (NASDAQ: GWGH) today and set a price target of $14. The company’s shares opened today at $10.05.

Diana noted:

“In spite of a 1Q17 GAAP net loss (due to lumpiness in realized policy benefit payments), most 1Q17 metrics confirmed to us that GWGH is on the path to reaching a tipping point of 1,000 unique lives insured in 2018, which should produce more steady earnings and cash flows. The company has undertaken a Project D100 initiative, to increase the percentage of direct originations (through affiliates) to 100%, versus 27% in 1Q17.”

According to TipRanks.com, Diana is a 4-star analyst with an average return of 4.7% and a 56.8% success rate. Diana covers the Financial sector, focusing on stocks such as Wheeler Real Estate ate Investment Trust Inc, First Savings Financial Group, and ARMOUR Residential REIT Inc.

Currently, the analyst consensus on GWG Holdings is Moderate Buy and the average price target is $14.50, representing a 44.3% upside.

In a report issued on May 12, Roth Capital also reiterated a Buy rating on the stock with a $15 price target.

Based on GWG Holdings’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $20.09 million and GAAP net loss of $45.1K. In comparison, last year the company earned revenue of $17.9 million and had a net profit of $1.07 million.

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GWG Holdings, Inc. operates as a financial services company. It engages in the creation of life insurance secondary market for the economic benefit of seniors with life insurance who are seeking post-retirement financial solutions, investors seeking yield derived from non-correlated assets, financial advisors seeking value-added products and services for their clients, and shareholders seeking to gain from the realization of the marketplace. The company was founded by Jon R. Sabes, Paul A. Siegert, and Steven F. Sabes in February 2006 and is headquartered in Minneapolis, MN.