William Blair analyst Christopher Kennedy has reiterated their bullish stance on CODI stock, giving a Buy rating today.
Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Compass Diversified Holdings’ promising growth trajectory. The company’s recent financial performance, particularly in the December quarter, met expectations and showed strong results despite the sale of Ergobaby and inventory adjustments. Looking ahead, the initial guidance for 2025 suggests substantial growth in subsidiary-adjusted EBITDA, with projections indicating an increase of 11% to 19% compared to previous estimates.
Furthermore, the company’s strategic focus on premium brands and its ability to navigate macroeconomic uncertainties, such as potential tariffs, bolster confidence in its resilience. While the M&A activity has been subdued, management anticipates a rise in 2025, with a disciplined approach towards acquiring assets similar to BOA, PrimaLoft, and Lugano. The performance of Lugano, which has shown remarkable growth, is a significant contributor to the company’s overall success and is expected to continue driving Compass towards its ambitious $1 billion adjusted EBITDA target by 2028.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $34.00 price target.