CompoSecure's average analyst price target has risen notably following positive updates on margin improvements, robust growth, and synergies from its recent acquisition. Targets have increased by $4 to $5 per share as analysts cite sustained business momentum and successful execution.
Analyst Commentary
Recent Street research shows that analysts are closely monitoring CompoSecure's operational improvements, growth trajectory, and acquisition outcomes. The collective sentiment reflects both strong optimism and some areas of caution as the company executes its strategies.
Bullish Takeaways- Bullish analysts highlight sustainable margin expansion and see the recent trends as signs of continued earnings momentum. This is boosting confidence in long-term profitability.
- Upward price target revisions have been supported by faster organic growth rates. There are expectations that robust growth will persist into the next several years.
- Analysts emphasize the significant opportunity created by the acquisition of Husky Technologies. They view this as a catalyst for synergies and attractive long-term value creation.
- Strength in the company’s core customer base, particularly in card growth, is seen as a key driver of future revenue. Recent product and partnership launches are also adding to growth potential.
- Bearish analysts remain neutral despite upgrades. They cite the need to address execution risks around integration of acquisitions and achievement of projected synergy targets.
- Some express reservations about the durability of current margin trends and suggest operational challenges could arise as the company scales its newly combined businesses.
- There is caution regarding whether recent fintech product launches and partnerships will translate to material financial results as anticipated.
- Questions remain around the long-term impact of large, transformative deals. There is uncertainty about how swiftly and fully these efforts will be reflected in valuation multiples.
What's in the News
- Needham raised its price target on CompoSecure to $22 from $18 and maintained a Buy rating. The firm cited strong card growth expected to continue through at least 2026 and early momentum in fintech offerings (Needham).
- Mary Holt has been appointed as Chief Financial Officer, succeeding retiring Tim Fitzsimmons. Holt will oversee all finance functions and brings over three decades of financial leadership experience (CompoSecure).
- CompoSecure completed a share repurchase of 647,782 shares, representing 0.63% of shares outstanding, for $12.24 million as part of a buyback program announced in March 2024 (CompoSecure).
- The primary exchange listing is moving to the New York Stock Exchange effective September 23, 2025, from Nasdaq Global Market (CompoSecure).
Valuation Changes
- Fair Value: Remains unchanged at approximately $25.17 per share.
- Discount Rate: Decreased slightly from 8.21% to 8.20%.
- Revenue Growth: Remains constant at 68.01%.
- Net Profit Margin: Unchanged at 50.28%.
- Future P/E: Declined fractionally from 12.73x to 12.73x.
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