CompoSecure stock rating upgraded by JPMorgan on margin growth

Published 12/11/2025, 11:42
CompoSecure stock rating upgraded by JPMorgan on margin growth

Investing.com - JPMorgan upgraded CompoSecure Inc. (NASDAQ:CMPO) from Underweight to Neutral and raised its price target to $20.00 from $16.00. The stock currently trades at $20.82, slightly above JPMorgan’s new target but well below the analyst high target of $32.

The upgrade follows CompoSecure’s improved margin performance and faster organic growth, which reached 13% in the third quarter, according to JPMorgan’s analysis. InvestingPro data shows CMPO has delivered impressive returns, with the stock up 75.11% over the past six months and 76.29% over the last year.

The financial services firm noted that CompoSecure’s fiscal year 2026 guidance indicates 10% growth excluding the pending Husky Technologies acquisition, which JPMorgan described as "notable and encouraging" after previously expressing skepticism about the company’s ability to maintain double-digit growth. This aligns with InvestingPro forecasts showing 10% revenue growth for FY2025 and analysts predicting profitability this year with EPS of $0.98.

JPMorgan raised its estimates for CompoSecure’s core metal card and Arculus business while increasing profitability targets based on "further proof of sustainable operating efficiencies."

The firm’s revised December 2026 price target does not yet incorporate CompoSecure’s acquisition of Husky Technologies, which is expected to close in the first quarter of 2026.

In other recent news, CompoSecure Inc. reported its third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.29, which exceeded the forecast of $0.2505 by 15.77%. Revenue also outperformed projections, reaching $120.9 million compared to the expected $117.23 million. These results reflect the company’s strong financial performance in the recent quarter. Additionally, analysts have noted the company’s positive earnings and revenue figures. The earnings call highlighted the company’s ability to exceed market expectations. These developments are part of a series of recent updates from CompoSecure. The company’s financial achievements have been a focal point for investors and analysts alike.

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