CompoSecure: B. Riley Raises PT to $23 from $17, Reiterates Buy Rating

CompoSecure: B. Riley Raises PT to $23 from $17, Reiterates Buy Rating

B. Riley, a leading investment bank, has raised its price target for CompoSecure (CMPO) to $23 from $17, while maintaining a Buy rating on the stock. This update comes amidst a series of positive developments for the company, including strong earnings reports and increasing analyst optimism.

CompoSecure, a provider of premium metal payment cards and digital security technology, has seen its stock price rebound since the spin-off of Resolute Holdings (RHLD) in late February. The company reported its Q2 2025 earnings on August 7, 2025, posting a non-GAAP profit of 25 cents per share, up from 19 cents in the same period last year. Revenue rose by 10% year-over-year to $119.6 million, driven by domestic sales growth of 22% and a decline in international sales due to performance overseas [3].

The increase in the price target reflects the strong fundamentals and positive outlook for the company. B. Riley's analysts highlighted CompoSecure's double-digit sales growth, record profitability, and higher full-year 2025 guidance, surpassing expectations. The firm also noted the increased competitive intensity in the high-end U.S. market and new product launches, which are expected to drive continued high metal card sales [2].

The stock currently trades around $19.25 per share, with a market capitalization of just under $2 billion. The company's enterprise value is $1.44 billion, with a total cash balance of $4.81 million and no debt. CompoSecure's share price has shown resilience, with a 21.736% increase following its last earnings report [2].

Analysts have been bullish on CompoSecure, with five firms reissuing Buy ratings and four of them containing upwardly revised price targets ranging from $16 to $21 per share. The consensus projects earnings to rise to $1.08 per share in FY2026, with sales growth of seven percent [3].

Despite the positive outlook, investors should remain cautious, as the stock is currently trading at roughly 20 times forward earnings and 4.7 times trailing revenues. The company does not pay a dividend, which may be a consideration for income-focused investors [2].

References:
[1] https://www.tradingview.com/news/tradingview:0025a9448248b:0-composecure-coo-gregoire-maes-sells-over-117-000-shares/
[2] https://www.tipranks.com/stocks/cmpo
[3] https://seekingalpha.com/article/4813596-composecure-feeling-frothy-again