21/08/2024 | Press release | Distributed by Public on 21/08/2024 21:48
William Blair initiated research coverage of TWFG, Inc. (TWFG $26.30), an independent distributor of personal and commercial insurance.
Analyst Adam Klauber estimated that the company would generate total revenue of $200 million in 2024, up from $173 million in 2023, and increasing to a projected $242 million in 2025 and $295 million in 2026.
"TWFG's primary offering, agency-in-a-box, provides a turnkey solution for insurance agents to launch an independent insurance agency," said Klauber. "In return for providing carrier access, technology, administrative support, and optional client service support, TWFG receives a 20% revenue share of commissions generated by agency-in-a-box branches. In contrast to franchise models, TWFG provides a greater level of autonomy for branch principals.
"TWFG stands to benefit from distribution mix shift toward independent agents and market share gains enabled by its scale and differentiated technology," added Klauber. "This should result in low- to midteens organic growth longer term. With tuck-in M&A activity, we expect growth for revenue can compound in the high teens and EPS growth in the low-20% range."
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William Blair or an affiliate was a manager or co-manager of a public offering of equity securities of TWFG, Inc. within the prior 12 months.
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William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from TWFG, Inc. or an affiliate within the next three months.
William Blair or an affiliate received compensation for investment banking services or non-investment-banking services from TWFG, Inc. within the last 12 months. TWFG, Inc. is or was, within the last 12 months, an investment banking client of William Blair and/or one or more of its affiliates.
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Current Ratings Distribution (as of 8/21/24)
Coverage Universe
Outperform (Buy): 71%
Market Perform (Hold): 29%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 9%
Market Perform (Hold): 1%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
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