In a report released today, Reginald Smith from J.P. Morgan upgraded CompoSecure to a Hold, with a price target of $20.00.
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Reginald Smith has given his Hold rating due to a combination of factors that suggest cautious optimism for CompoSecure’s future performance. The company has shown promising signs of margin improvement and organic growth, with a notable 13% increase in the third quarter. The guidance for fiscal year 2026 indicates a 10% growth rate, excluding the impact of the Husky Technologies acquisition, which is a positive development given previous skepticism about achieving sustained double-digit growth.
Furthermore, the decision to maintain a Hold rating is influenced by the potential synergies from the upcoming acquisition of Husky Technologies, expected to close in the first quarter of 2026. While the acquisition is anticipated to enhance revenue and EBITDA significantly, the current estimates do not yet reflect these changes. The stock’s valuation, trading at a premium compared to similar companies, also plays a role in the Hold rating, as it suggests limited upside potential from current levels. Overall, the Hold rating reflects a balanced view of the company’s strengths and the uncertainties associated with the acquisition and market conditions.
In another report released on November 4, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $21.50 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is neutral on the stock.