Cautious Optimism for CompoSecure: Hold Rating Amid Promising Growth and Acquisition Uncertainties

Tip Ranks
2025.11.12 09:45
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Reginald Smith from J.P. Morgan has upgraded CompoSecure to a Hold rating with a price target of $20.00, citing cautious optimism due to margin improvement and a 13% increase in Q3. The guidance for fiscal 2026 suggests a 10% growth rate, excluding the Husky Technologies acquisition. While the acquisition is expected to enhance revenue, current estimates do not reflect this. The stock's premium valuation indicates limited upside potential, leading to a balanced view amid uncertainties. TR | OpenAI also reiterated a Hold rating with a $21.50 price target.

In a report released today, Reginald Smith from J.P. Morgan upgraded CompoSecure to a Hold, with a price target of $20.00.

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Reginald Smith has given his Hold rating due to a combination of factors that suggest cautious optimism for CompoSecure’s future performance. The company has shown promising signs of margin improvement and organic growth, with a notable 13% increase in the third quarter. The guidance for fiscal year 2026 indicates a 10% growth rate, excluding the impact of the Husky Technologies acquisition, which is a positive development given previous skepticism about achieving sustained double-digit growth.
Furthermore, the decision to maintain a Hold rating is influenced by the potential synergies from the upcoming acquisition of Husky Technologies, expected to close in the first quarter of 2026. While the acquisition is anticipated to enhance revenue and EBITDA significantly, the current estimates do not yet reflect these changes. The stock’s valuation, trading at a premium compared to similar companies, also plays a role in the Hold rating, as it suggests limited upside potential from current levels. Overall, the Hold rating reflects a balanced view of the company’s strengths and the uncertainties associated with the acquisition and market conditions.

In another report released on November 4, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $21.50 price target.

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