Benchmark Co. analyst Mark Palmer has reiterated their bullish stance on CMPO stock, giving a Buy rating today.
Mark Palmer has given his Buy rating due to a combination of factors influencing CompoSecure’s outlook. Despite a recent decline in the company’s share price following a mixed fourth-quarter report, Palmer sees potential in the company’s strategic investments aimed at boosting organic growth and operational efficiency. The guidance for mid-single digit growth in revenue and adjusted EBITDA for 2025 aligns with previous expectations set by executive chairman David Cote, who has a strong track record in capital allocation.
Moreover, the recent spin-off of Resolute Holdings and the management agreement between the two entities is expected to enhance CompoSecure’s capital allocation strategy and M&A execution. Although the management fees associated with this agreement will impact the adjusted EBITDA, the overall growth outlook remains positive. Palmer’s confidence in Cote’s leadership and the strategic direction of the company underpins the Buy rating, even as the price target is adjusted to reflect these developments.
In another report released today, Needham also maintained a Buy rating on the stock with a $15.00 price target.
Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CMPO in relation to earlier this year.
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