Singular Research gives Citizens stock a long-term buy rating, citing growth prospects

Singular Research gave Citizens Inc. (NYSE: CIA ) stock a positive outlook on Wednesday. The company has a Long-Term Buy rating and $3.50 price target, reflecting confidence in its growth prospects.

Citizens Inc., best known for providing U.S. dollar-denominated life insurance in Latin America and Asia, is recognized for its effective use of language and cultural expertise to serve its markets. In addition to international products, Citizens Inc. also offers whole life insurance policies in the United States that are primarily designed to cover final expenses.

The company's core business has shown significant growth, with new life insurance policy issuance more than doubling since FY20.

In addition, Citizens Inc. is expanding its business scope through its white label business, allowing other companies to offer Citizens' insurance products under their own brands. This strategy offers additional avenues for growth and has been highlighted as a contributing factor to the optimistic assessment of the company's stock.

Singular Research set a new price target of $3.50, which represents potential upside for investors, based on the firm's analysis of Citizens Inc.'s performance and strategic moves. A Long-Term Buy rating indicates that the company believes the stock is a good investment for the foreseeable future, given the company's proven distribution growth and expanding market presence.

Investment Professional Insights

As Citizens Inc. (NYSE: CIA ) gains momentum due to Singular Research's positive outlook, InvestingPro's real-time data provides a deeper financial perspective on the company. Citizens Inc. has a market capitalization of $102.61 million and an attractive price-to-earnings (P/E) ratio of just 4.19, which may appeal to value-oriented investors as it has a low P/E ratio. As of the fourth quarter of 2023, the company's revenue in the trailing 12 months was $240.68 million, a growth rate of 3.51%. Despite this growth, the company's shares have experienced a significant decline over the past three months, down 21.89%, which is in line with Singular Research's higher price target and signals potential recovery and upside for investors .

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InvestingPro Tips highlights that while Citizens Inc. was profitable in the last 12 months, it paid no dividends to shareholders, which may be a consideration for income-focused investors. Additionally, the company's short-term debt exceeds its liquid assets, which risk-averse investors may want to consider. For those who would like a deeper understanding of Citizens Inc.'s financial health and future prospects, has 5 more InvestingPro Tips.To get these insights, use the coupon code for exclusive offers PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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