Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on CompoSecure, boosting the price target to $19.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors including CompoSecure’s strong financial performance and strategic positioning in the market. The company reported second-quarter earnings per share that exceeded both the firm’s and consensus estimates, driven by robust sales of metal cards following several high-end product launches in the U.S. market. This positions CompoSecure well to benefit from the growing competition in the high-end credit card segment and the expansion of metal cards into the mass market.
Additionally, CompoSecure’s adjusted revenue surpassed expectations due to strong domestic demand and growth in both traditional banks and fintechs, alongside improved manufacturing efficiencies and a favorable product mix. The management’s decision to raise guidance for 2025 revenue and EBITDA further underscores the positive outlook. Furthermore, the company’s ongoing investments and strategic initiatives, such as the launch of new products and maintaining a strong gross margin profile, support the optimistic forecast. These factors collectively contribute to the Buy rating assigned by Moshe Orenbuch.