CompoSecure Inc (NYSE:CMPO) generated healthy margin expansion and accelerating organic growth in the third quarter, according to JPMorgan.
The CompoSecure Analyst: Analyst Reginald Smith upgraded the rating from Underweight to Neutral. He also raised the price target from $16 to $20.
The CompoSecure Thesis: The company's margin expansion and reacceleration in organic growth "appears to be sustainable," Smith said.
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Management raised their 2025 revenue and EBITDA guidance by more than the third-quarter beat, implying high-teens year-on-year growth in the fourth quarter, the analyst stated.
CompoSecure also introduced its 2026 guidance, calling for 10% revenue growth and EBITDA margin expansion of as much as 170 basis points (bps) to 37.3%, ahead of Street estimates, he added.
Smith raised the adjusted EBITDA estimates for 2025 and 2026 from $157 million to $168 million and from $164 million to $187 million, respectively, saying that this does not include the Husky acquisition, which is expected to close in the first quarter of next year.
CMPO Price Action: Shares of CompoSecure had risen by 0.09% to $20.84 at the time of publication on Wednesday.
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