Compass Diversified initiated with a Buy at TD Cowen

TD Cowen initiated coverage of Compass Diversified (CODI) with a Buy rating and $34 price target Compass is a “novel type of company” that offers shareholders an opportunity to own a portfolio of actively managed businesses “with compelling attributes,” the analyst tells investors in a research note. The firm says the company’s advantages include diversification, flexibility to transact at optimal times, favorable cost of debt, and permanent equity capital. TD sees strong earnings growth and multiple expansion as “dual drivers” for the shares.