In a report released today, Moshe Orenbuch from TD Cowen maintained a Buy rating on CompoSecure (CMPO – Research Report), with a price target of $16.00.
Moshe Orenbuch has given his Buy rating due to a combination of factors influencing CompoSecure’s performance and future prospects. Despite a slight miss in the fourth quarter earnings per share compared to his estimate, the results were above the consensus, indicating a positive market reception. The company’s Arculus segment is experiencing robust growth, contributing positively to revenue and EBITDA, which suggests a promising trajectory for this part of the business.
Furthermore, while the guidance for 2025 shows mid-single-digit growth in revenue and adjusted EBITDA, the management’s expectations for Arculus to be net positive by the end of 2025 adds a layer of optimism. The international segment’s faster growth compared to domestic operations also highlights potential for expansion beyond current markets. Additionally, the company’s strategic sourcing of raw materials from regions less impacted by tariffs provides a competitive edge in managing costs. These elements collectively support the Buy rating, reflecting confidence in CompoSecure’s ability to navigate challenges and capitalize on growth opportunities.
According to TipRanks, Orenbuch is a top 25 analyst with an average return of 21.9% and a 68.21% success rate. Orenbuch covers the Financial sector, focusing on stocks such as Capital One Financial, SLM, and OneMain Holdings.
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