Analyst Cassie Chan of Bank of America Securities maintained a Buy rating on CompoSecure (CMPO – Research Report), with a price target of $19.00.
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Cassie Chan’s rating is based on the strategic decision by CompoSecure to spin off Resolute Holdings, which is seen as a positive move allowing the company to concentrate on its core business of premium metal cards. This spin-off is expected to enhance CompoSecure’s competitive edge and strengthen its market position. Additionally, the increase in the share buyback program from $40 million to $100 million reflects the company’s confidence in its financial stability and future growth prospects.
Despite the preliminary financial results for 2024 showing revenues slightly below expectations, the alignment with guidance and the strong adjusted EBITDA figures indicate robust operational performance. The spin-off and continued focus on strategic investments and mergers and acquisitions by Resolute Holdings are anticipated to drive organic growth and diversify CompoSecure’s business. These factors collectively contribute to Chan’s Buy rating, highlighting the company’s solid long-term growth potential.
In another report released yesterday, Lake Street also maintained a Buy rating on the stock with a $18.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CMPO in relation to earlier this year.